ONGC rides high on foreign fund interest

DALAL STREET SPIKES

ONGC gained on institutional buying support. The stock of PSU oil major was up 1.02 per cent to Rs 840 on back of strong volumes of over four lakh shares on BSE.

Market sources said, a leading foreign fund is actively buying at the counter for the past few trading sessions. There are reports indicating that ONGC is expected to report strong net profits of around Rs 12,500 crore for FY05.

A chief investment officer with a domestic mutual fund said, the stock is currently under-valued and should gain with rise in crude prices.

Over the next few years, 30 per cent of the company's revenues will be derived from overseas operations and will be the key driver of growth for the company, the CIO added. ONGC is yet to announce its March ended quarterly results.