Business Standard

ONGC pips RIL as largest m-cap company

ONGC has seen a sharp up move in its share price since govt announced a partial de-control of diesel prices this month

Related News

State-run explorer Oil and Natural Gas Corporation () overtook Reliance Industries Ltd. (RIL) to become country's largest company by market capitilisation (m-cap). ONGC's m-cap rose to Rs 2.90 lakh crore to pip RIL, which has a m-cap of little over Rs 2.86 lakh crore.

Last year, it was Coal India Ltd. that saw its m-cap zoom past RIL. However, RIL soon re-claimed its position as the stock rose from its annual low levels post a share buy-back announcement.
 
ONGC has seen a sharp up move in its share price since government announced a partial de-control of diesel prices earlier this month. In the current subsidy sharing arrangement, ONGC and Oil India Ltd sell crude Oil to Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp at a discount in order to partly compensate for subsidised fuel sales. Post de-control both the state-run companies are likely to see significant gains from a diesel price hike as it would bring down their subsidy burden and allow them to earn more.

Similarily, RIL ralled this month due to its better than expected quarterly results. The diesel de-control was a boost for RIL too. The company, run by billioner Mukesh Ambani, will be in better position to compete if government companies sell fuel at market rates. RIL will also be able to open its petrol pumps that it had to shut.

Market experts say, given the sentiment both RIL and ONGC have a potential for a sharp rally from current levels. It would be interesting to see how long ONGC can claim to be the largest m-cap company. RIL has maintained that position for nearly a decade now.

The ONGC share price rose 0.44% todat to close at Rs 339. RIL was down 1.39% at Rs 886.

Read more on:   
|
|

Read More

Sebi clears Diageo's open offer for USL stake

The regulator gives its green signal to Diageo's Rs 5,441-crore open offer for 26% non-promoter United Spirits

Quick Links

 

Market News

RIL insider trading case hearing adjourned

Sebi has been investigating RIL for profiting from insider information on Reliance Petroleum, a subsidiary company that later merged with RIL

JSW Steel takes a brief pause

Though the company's outlook remains strong, concern on steel prices and demand adds to near-term challenges

Markets weaken further; Nifty slips below 6700

The markets have cracked further in noon trades due to broad-based selling pressure.

Future Retail extends rally on talk of acquiring Nilgiris

The stock has rallied nearly 30% in past two trading sessions on back of heavy volumes.

Banking stocks trim gains; Market in red

Infosys and BHEL are down 2.3%, TCS, HDFC, Larsen & Toubro and Wipro are down 1.4-1.6%

Back to Top