ONGC snaps six day losing streak

Shares of ONGC rose 2.92% at Rs 91.70, snapping a six days losing streak. The stock has slipped 13.37% in the past six trading sessions from its previous closing high of Rs 102.85 on 20 February 2020.

The stock slumped 13.37% in the past six trading sessions from its previous closing high of Rs 102.85 on 20 February 2020.

Earlier, ONGC entered into a share purchase agreement dated 27 February 2020 with consortium of eight nationalized banks, which hold stake in Petronet MHB, for acquisition of 9,48,22,632 equity shares, corresponding to 17.28% stake, of Petronet MHB for Rs 185.38 crore. Petronet MHB provides petroleum product transportation facility from Mangalore Refinery at Mangalore to the Oil Marketing Company Terminals at Hassan and Devangonthi (Bangalore).

Shares of ONGC continued to witness selling pressure for last six days on the back of weak crude oil prices. Low crude oil prices could result in lower realizations from crude sales for oil exploration firms.

ONGC is engaged in the exploration, development and production of crude oil and natural gas. As of 31 December 2019, the Government of India held 62.78% stake in the company.

On a standalone basis, net profit fell 49.8% to Rs 4,151.63 crore on 14.4% decline in net sales to Rs 23,710.05 crore in Q3 FY20 over Q3 FY19.

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