ONGC Share Price Today: ONGC shares were in demand on Friday, September 11, rising as much as 2.21% to hit an intraday high of Rs 242.25 as crude oil prices climbed towards $110 a barrel.
At 9:24 am, ONGC shares were trading near the day's high, up 1.94% at Rs 241.60, even as the broader market remained under pressure. The BSE Sensex was down 0.85% at around 74,269 at the time.
The sharp move in ONGC came as Brent crude prices moved higher, supporting sentiment towards upstream oil and gas producers.
Brent Crude Nears $110: Why Is It Positive For ONGC?
Brent crude was last trading 0.88% higher at $108.58 a barrel, according to the latest market indications.
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ONGC, as an upstream oil and gas producer, generally benefits from higher crude prices because stronger benchmark prices can improve its realisations and profitability, assuming production levels remain stable.
Higher crude prices have also historically supported sentiment towards upstream producers such as ONGC and Oil India, particularly when benchmark oil prices move above the $100-a-barrel mark.
How Higher Crude Prices Help ONGC
- Higher realisations: ONGC sells the crude oil it produces, so stronger global prices can translate into higher revenue per barrel.
- Earnings support: Higher crude prices can improve profitability if production remains steady and costs do not rise proportionately.
- Positive sector sentiment: A sustained rise in Brent crude can trigger buying interest in upstream oil and gas stocks.
ONGC Share Price: Volume Spike
Trading activity in ONGC also picked up sharply during the session.
Around 5.29 lakh shares worth Rs 12.75 crore had changed hands on the BSE, while 75.57 lakh shares worth Rs 182.22 crore were traded on the NSE.
The rise in both price and volumes indicates heightened investor interest in the stock as crude oil prices strengthen.
ONGC Q1 Results: Profit Surges Sequentially
ONGC reported a sharp sequential improvement in its June-quarter performance, supported by stronger operational performance.
The company's consolidated net profit surged to Rs 17,034 crore in Q1, compared with Rs 6,650 crore in the March quarter.
Revenue from operations rose 29.3% quarter-on-quarter to Rs 46,460 crore, from Rs 35,928 crore in the preceding quarter.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled to Rs 28,355 crore from Rs 12,666 crore in the previous quarter. As a result, the company's EBITDA margin expanded sharply to 61% from 35.3%.
However, other income declined to Rs 1,861 crore in the June quarter from Rs 2,628 crore in the preceding three months.
ONGC Share Price: What Investors Should Watch
For ONGC investors, the immediate trigger remains the movement in global crude oil prices. A sustained rise in Brent towards or above $110 a barrel could keep sentiment favourable for upstream producers.
At the same time, investors will track ONGC's production growth, crude and gas realisations, operating performance and quarterly profitability to assess whether higher oil prices translate into sustained earnings growth.
ALSO READ: ONGC Q1 Results: Profit Soars 2.5x As Margin Expands Sharply; Revenue Up 29%
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