Trump's 25% Tariff On India: ONGC, Oil India Shares Decline On Russia Import Penalty Risk
Oil India declined 1.45% intraday and ONGC declined 0.83% intraday.
Shares of Oil and Natural Gas Corporation (ONGC) and Oil India declined on Thursday, in line with broader market sentiment which turned cautious following U.S. President Donald Trump’s announcement of a steep 25% tariff on Indian exports.
The tariff package, unveiled late Wednesday, also includes unspecified penalties for countries importing oil and other commodities from Russia, a move that could have implications for India’s energy trade. In the same light, major listed entities like ONGC and Oil India saw immediate disruption.
Oil India declined 1.45% intraday and ONGC declined 0.83% intraday.
Petroleum and electricity have been granted exemptions under the new tariff regime, which cushions the impact for companies like ONGC and Oil India. The nation's state-run producers are relatively insulated due to their domestic focus and structured trade channels.
ONGC, India’s largest oil and gas explorer, and Oil India, a key upstream player, both have limited direct exposure to U.S. markets. Their operations are primarily geared toward domestic production and government-linked supply contracts, which further buffers them from external trade shocks.
While unlisted firms with complex international supply chains may face headwinds, ONGC and Oil India are expected to maintain operational stability in the near term.
