ONGC surges on price hike buzz

The stock has gained over 7% in past two trading sessions on BSE.

Oil and Natural Gas Corporation (ONGC) has surged 5% to Rs 269, extending its previous day’s 2.4% rally, on price hike buzz.

The company which facing a far larger subsidy burden in current fiscal said that one-time hike in diesel price is the only option to combat rising fuel prices globally, the PTI report suggests.

The risk of subsidy burden in 2013-14 is higher than in FY'13. The government may have to pass on additional burden to upstream companies that are responsible for exploration and production of oil, added report quoting ONGC Chairman Sudhir Vasudeva.

The stock opened at Rs 262 and hit a low of Rs 259 so far on BSE. A combined 2.14 million shares change hands on the counter till 1230 hours on BSE and NSE.