ONGC gains after foreign brokerage upgrade

ONGC rose 1.97% to Rs 451.20 at 13:03 IST on BSE on reports a foreign brokerage upgraded the stock to buy from neutral citing more gains for the company from oil reforms.

Meanwhile, the S&P BSE Sensex was up 157.57 points or 0.58% at 27,184.27.

On BSE, so far 3.12 lakh shares were traded in the counter as against average daily volume of 5.77 lakh shares in the past two weeks.

The stock hit a high of Rs 455.85 and a low of Rs 447 so far during the day.

Meanwhile, ONGC also gained from drop in crude oil prices which are at a 16-month low. The fall in crude prices will help oil marketing companies as well as upstream oil companies such as ONGC narrow the under-recoveries on account of selling diesel, LPG and Kerosene at regulated prices. Petrol prices are deregulated.

ONGC's net profit rose 19.1% to Rs 4781.79 crore on 13.2% growth in net sales to Rs 21747 crore in Q1 June 2014 over Q1 June 2013.

ONGC is India's largest government-run corporation and produces about 70% of India's crude oil and natural gas.

Powered by Capital Market - Live News