Street gives thumbs up to ONGC even as stake sale remains a challenge

With Brent now trading lower, ONGC's realisations are expected to decline in the September quarter

The ONGC stock, which fell to a 52-week low on Wednesday, has seen some gain thereafter. Falling crude and gas prices is not good news for India’s largest oil producer, even though analysts don’t see much impact of the fire incident at the Uran plant on gas sales in the second quarter. 

Declining global crude oil prices are likely to lead to lower net realisations for ONGC’s crude business, while falling gas prices may also affect future earnings. As a consequence, the stock is down 29 per cent since its May highs.

Brent crude, which stood at $74-75 a barrel