ONGC, Oil India rally up to 4%, trade higher for 4th day in row; here's why

ONGC, Oil India share price today

 

Shares of state-owned upstream companies, Oil and Natural Gas Corporation (ONGC) and Oil India continued their upward movement amid heavy volumes on Wednesday, owing to higher oil prices.

 

Share price of Oil India hit an eight-month high of ₹467.30, gaining 4 per cent on the BSE in Wednesday’s intra-day deals. The counter saw huge trading volumes with a combined nearly 6 million equity shares changing hands on the NSE and BSE till 10:09 AM. The BSE Sensex was down 0.18 per cent at 83,479.

 

The stock price of the exploration & production (E&P) company now quotes at its highest level since June 2025. It had hit a 52-week high of ₹491.65 on June 16, 2025. In the past two trading days, the market price of Oil India has appreciated by 8 per cent. In the past four trading days, it surged 12 per cent.

 

 

Meanwhile, share price of ONGC was up 2 per cent to ₹249 on the BSE in intra-day trade. In the past four trading days, the stock has rallied 8 per cent. 

 

Why state-owned upstream companies outperforming market?

 

According to reports, Brent Crude oil futures hovered around $65 per barrel on Wednesday, holding most of the gains from a four-day rally near an almost 12-week high, as geopolitical risk premiums remain elevated amid escalating anti-government protests in Iran, OPEC’s fourth-largest producer.

 

The rally followed President Donald Trump’s announcement of 25 per cent tariffs on countries trading with Iran, aimed at increasing pressure amid ongoing protests. His warning of potential military action further heightened concerns over Middle East stability and possible disruptions to Iranian oil exports, a key component of global supply, said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

 

President Trump warned of a strong response if Iranian authorities crack down on protesters, while Tehran hinted it could act preemptively, fueling concerns about potential supply disruptions. Ongoing Russia–Ukraine tensions and commodity index rebalancing also supported prices. Expectations that Venezuela may soon resume exports could limit sharp upside in the near term, said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.

 

Brokerages view on ONGC, Oil India

 

ONGC is set to benefit from visible volume ramp-up across key gas projects such as KG 98/2, Daman Upside Development Project (DUDP), and Discovered Small Field (DSF) in FY26 and FY27, which should lift total production and offset ageing field declines.  Gas output is guided at 21bcm for FY26 (~7 per cent YoY growth) with further upside from ~5mmscmd of DUDP gas expected by Mar’26. Crude output from technical service providers (TSPs) will also start to contribute meaningfully. Moreover, domestic gas pricing is favourable given ~15–20 per cent of volumes will fall under the net well gas (NWG) formula, supporting margins. Ongoing cost rationalization (rig rates, logistics) and monetization of recent discoveries will aid near-term profitability, analysts at YES Securities said in the Q2 result update. The brokerage firm has a ‘BUY’ rating on ONGC with a target price of ₹302 per share.

 

Meanwhile, Chandan Taparia, Head Derivatives & Technicals, Wealth Management, Motilal Oswal Financial Services, and, Vinay Rajani, senior technical and derivative analyst, HDFC Securities have  recommended ‘BUY' rating on Oil India with a target price of ₹475 per share.

 

Kunal Kamble, Senior Technical Research Analyst, Bonanza, recommended ‘BUY’ on Oil India with a target price of ₹509 per share. Oil India has delivered a decisive bullish breakout from a long-standing falling trendline and symmetrical triangle pattern, backed by strong price action and a volume expansion, analyst said. CLICK HERE FOR FULL REPORT

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