ONGC Share Price: Falls 6.5% amid oil market concerns
Oil and Natural Gas Corporation (ONGC) shares fell sharply in morning trade, declining 6.48 per cent to ₹227.55, down ₹15.76 as of 10.15 AM.
The significant drop comes amid broader concerns about global oil demand and follows volatile trading patterns, with data showing a decrease in both open interest and price.
The state-owned energy major recently saw open interest decline by 1.27 per cent to 63,811, while the price dropped 2.78 per cent to ₹244.25 according to data from AUM Capital, indicating potential repositioning by market participants.
Despite the current downturn, ONGC received positive news regarding its operational footprint, securing a significant 15-year contract for production enhancement at mature fields in the Rajahmundry asset. The company has taken over responsibility for these operations following a letter of award from ONGC itself, which analysts consider positive for medium to long-term prospects.
The pressure on ONGC shares aligns with wider oil market concerns, as global crude prices have dipped amid fears of demand slowdown triggered by escalating geopolitical tensions and potential trade wars. As a major oil and gas producer, ONGC’s stock valuation typically maintains close correlation with global crude price trends.
Market observers note that while the 15-year Rajahmundry contract represents a positive development for the company’s long-term operational outlook, immediate investor sentiment appears dominated by broader energy market volatility and bearish oil price movements.
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Published on April 4, 2025
