ONGC Bucks the Trend: Lone Gainer as Oil & Gas Peers Plunge Amid Crude Chaos

Mumbai, March 23: ONGC emerged stronger on Monday, bucking the brutal selloff sweeping BSE and NSE oil & gas stocks, rising +0.34% or Rs 0.90 to Rs 266.30 even as peers cratered on surging crude fears. The state-run explorer’s resilience stood out amid a sector-wide rout, underscoring its upstream positioning that benefits directly from elevated oil prices without the refining margin squeeze hammering downstream rivals.

While Petronet LNG plunged -7.24% or Rs 18.65 to Rs 239 as the biggest loser, Adani Total Gas cratered -6.14% or Rs 33.90 to Rs 518, and BPCL shed -5.68% or Rs 16.35 to Rs 271.45, ONGC’s modest uptick highlighted divergent fortunes within the energy complex. Upstream producers like ONGC gain from higher realisations on output, insulating them from the input cost nightmares battering refiners and gas distributors in this risk-off storm.

Trump Ultimatum

The broader downturn stemmed from US-Iran hostilities, with President Trump’s 48-hour ultimatum threatening strikes on Iranian power plants and Strait of Hormuz disruptions. Brent crude spiked above $112 per barrel, sparking inflation alarms, rupee weakness, and FII pullbacks. Refiners like Hindustan Petroleum (-5.47% or Rs 18.40 to Rs 317.90) and IOC (-4.38% or Rs 6.33 to Rs 138.27) reeled from collapsing crack spreads, while city gas players like IGL (-4.87% or Rs 7.63 to Rs 149) and GAIL (-4.80% or Rs 6.86 to Rs 136.01) faced pass-through uncertainties. Oil India dipped -1.89% or Rs 9 to Rs 466.50; Reliance eased -1.07% or Rs 15.10 to Rs 1,399.30, its diversification providing minor ballast.

ONGC’s green print—the sector’s sole gainer—reflected strong production momentum and direct oil price leverage, appealing to bargain hunters amid panic selling. Traders noted its hefty market cap (over Rs 3.35 lakh crore) and stable PSU pedigree added to the relative safety, even as macro shocks dominated.

Conclusion

This divergence illustrates how crude spikes can split the sector: Boon for explorers, bane for processors. With India’s import dependence at 85%, sustained high oil threatens subsidies and deficits, but ONGC’s domestic fields offer a buffer.

On Monday morning, Indian markets opened sharply lower, with BSE Sensex falling around 1,300-1,400 points and NSE’s Nifty 50 declining below 22,800 amid the rising conflict in the Middle East and surging crude oil prices. This trend, arising from a rapid selloff, shows an escalating pressure in risk aversion.

Source:

• https://www.bseindia.com/stock-share-price/oil-and-natural-gas-corporation-ltd/ongc/500312/
• https://www.bseindia.com/sensex/code/37