ONGC rallies 6% in 2 days, hits 52-week high; what's driving PSU stock?

ONGC share price today

 

Share price of the state-owned upstream company Oil & Natural Gas Corporation (ONGC) hit a 52-week high at ₹280.80, gaining 2 per cent on the BSE in Friday’s intra-day trade on higher crude oil prices. In comparison, the Nifty 50 was trading flat or down 0.01 per cent at 24,452.65 at 09:41 AM. 

In the past two trading days, the market price of ONGC has rallied 6 per cent. The stock surpassed its previous high of ₹280.30 touched on February 12, 2026. It had hit a record high of ₹344.60 on August 1, 2024. 

Meanwhile, in the past one month, ONGC has outperformed the market by surging 16 per cent, as against 0.87 per cent rise in the Nifty 50.

What’s driving ONGC stock price?

 

Oil prices were higher on Friday as concerns of conflict between the US and Iran ratcheted up, with Washington saying Tehran will suffer if it does not agree on a deal about its nuclear activity within a matter of days. 

Brent crude futures rose 21 cents, or 0.3 per cent, to $71.87, while US West Texas Intermediate crude gained 23 cents, or 0.4 per cent to $66.66, the Reuters reported. 

Also supporting oil prices were reports of falling crude oil stocks and limited exports in the world's biggest oil producing and exporting countries. 

Meanwhile, NYMEX crude oil prices gained more than 2.5 per cent on Thursday amid escalating geopolitical tension between the US and Iran. Further, a sharp drop in the US crude oil inventories by 9.014 million barrels, largest drop in 5-months also supported prices to rise towards $66.7 mark. 

ONGC on January 28, 2026 said that the rise in the company’s share price was attributable to the increase in the world crude oil prices. The company is engaged in the business of E&P (Exploration and Production) of Crude Oil and Natural Gas. It is also to inform that the prices of crude oil and gas are dependent on the world market and geopolitics.  

ONGC registered an upward growth of 0.35 per cent in Crude Oil production during the first nine months (April to December) of the financial year 2025-26 (9MFY26) while Natural Gas production remains constant during the same period.  ALSO READ | Novartis shares hit 20% upper circuit as Swiss parent to sell entire stake

Brokerages view on ONGC

 

The prospects for both the companies (Oil India and ONGC) may improve – with volume growth, stronger gas realisations and delta from refining/downstream subsidiaries likely aiding their consolidated earnings momentum over FY26–28E, even as crude realisations take a hit due to moderation in Brent. Analysts at ICICI Securities has downgraded Oil India to ADD (from Buy) due to fair valuations and some delays in supporting infra execution for gas while ONGC’s BUY rating sees higher conviction, owing to attractive valuations and better visibility of production growth.

 

With KG basin to reach ~8mmscmd by FY27, along with Daman upside (4–5mmscmd) and DSF II production, share of new well gas (NWG) could increase to >35 per cent, from its current 18–20 per cent, in 3-4 years; thus, improving gas contribution, even as oil sees USD 64–66/bbl realisation over FY26-28E, the brokerage firm. The brokerage retained a ‘Buy’ rating on ONGC with a revise target price of ₹332 (earlier ₹320).

 

Emkay Global Financial Services also retained its ‘Add’ rating on ONGC, with an revised target price to ₹300 from ₹280 earlier.

 

The management guided to FY27 crude/gas production (ex BP TSP upside) of 21mmt/21.5bcm. All major units at KG-98/2 are nearing completion, with gas ramp-up from Q1FY27. BP TSP in Mumbai High has shown encouraging results, with oil and gas levels at 7 per cent above expectations. Daman project is also close to monetization, with 4-5mmscmd peak gas in FY27 itself. NWG share is likely to continue increasing sequentially. 

 

Analysts at the brokerage firm retained FY26E EPS, and raise FY27/28E SA EPS by 10-11 per cent each, building in the higher Brent at $67/bbl and ₹/USD at ₹90, besides some increase in gas production estimate.  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.