ONGC Share Price Rises; Rallies between 7-8%; What’s Driving the Stock Price?  

Mumbai, 28 January 2026: Shares Oil and Natural Gas Corporation Ltd (ONGC) surged sharply in Wednesday’s trading session after the company announced a strategic agreement with Reliance Industries to share resources for deepwater offshore exploration and production along India’s eastern coastline, covering the Krishna Godavari basin and Andaman offshore region. 

The rally was also supported by global crude near $68 per barrel and ONGC’s VLEC shipbuilding deal with Mitsui and Samsung Heavy Industries. Oil India Ltd rose 9.83% to ₹492.65, aided by crude prices and the India–EU trade pact. 

ONGC shares rallied strongly from the opening bell, climbing over 7% in early trade, before stabilising later in the session. As of 2:15 pm IST, ONGC share price was trading at ₹265.89, up ₹17.94 or 7.24% on the day on the National Stock Exchange. The stock touched an intraday high of ₹269.50, marking a fresh 52-week high, with heavy volumes seen across exchanges.  

ONGC shares are also up 10% so far this month. The stock had gained a similar quantum in January 2025 as well, and has delivered positive returns every January going back to 2022, with the expectation of 2023. 

Deepwater Resource-Sharing Pact Triggers Sharp Stock Reaction 

The sharp move in both stocks followed disclosures that ONGC and Reliance Industries have entered into a formal agreement to enable resource sharing for deepwater offshore exploration and production (E&P) projects. The arrangement targets complex, capital-intensive offshore blocks along the east coast, where high costs and limited infrastructure often delay execution. 

According to the regulatory filing, the collaboration aims to improve cost optimisation, faster execution timelines, and better asset utilisation by allowing both companies to jointly use critical offshore and onshore infrastructure. This includes drilling rigs, marine vessels, processing facilities, pipelines, power systems, and specialised well and logging services. 

The announcement acted as an immediate catalyst for the stocks, particularly for ONGC, which has significant exposure to deepwater assets in the Krishna Godavari basin and Andaman Sea. 

Oilfields Amendment Act 2025 Provides Policy Backbone 

ONGC stated that the agreement aligns with the framework introduced under the Oilfields (Regulation and Development) Amendment Act, 2025, rolled out by the Ministry of Petroleum and Natural Gas. The amended law enables shared use of infrastructure and facilities among exploration and production operators, both onshore and offshore, to accelerate hydrocarbon development. 

By reducing duplication of high-value assets and addressing idle capacity issues, the framework seeks to lower operational costs and improve efficiency in technically challenging offshore projects. The ONGC–Reliance pact represents one of the first major industry-level implementations of this policy direction. 

ONGC Strengthens Supply Chain with VLEC Shipbuilding 

ONGC’s joint venture with Japan’s Mitsui O.S.K. Lines (MOL) signed contracts with Samsung Heavy Industries, South Korea, on 27 January 2026 during India Energy Week in Goa, to construct two state-of-the-art Very Large Ethane Carriers (VLECs).  

Each Indian-flag vessel will have a cargo capacity of 1 lakh cubic metres and is designed to transport approximately 600 KTPA of ethane from the USA to ONGC’s subsidiary OPaL. Delivery of the vessels is scheduled for FY 2028-29, with two dedicated entities in GIFT City, Gujarat, managing ownership, operations, and ensuring a stable corridor for energy feedstock. 

Crude Prices at Four-Month High Add Momentum 

The rally in ONGC and other upstream oil stocks was further supported by a sharp rise in global crude prices. Brent crude climbed close to $68 per barrel, hitting a four-month high, driven by a weaker US dollar, supply disruptions caused by severe winter storms in the United States, and heightened geopolitical tensions involving the Middle East. 

Higher crude prices tend to directly support the revenues of upstream producers. Reports indicate that for companies like ONGC and Oil India, a $1 per barrel increase in crude prices can add ₹300–400 crore annually to revenues, strengthening near-term earnings visibility. 

Crude and LNG exports from US Gulf Coast ports dropped to zero on Sunday, while production losses in Kazakhstan also supported higher oil prices, Reuters reported once supply fears ease, selling may return, with WTI crude likely near $60 per barrel this year amid geopolitical risks. Rising tensions between the US and Iran, including the deployment of a US aircraft carrier and warships, are further sustaining oil prices amid concerns over potential military action. 

Oil India Share Price Rallies 9.7% to Record One-Year High 

Apart from ONGC, Shares of Oil India Ltd surged 9.67% to ₹492 in early trade, surpassing its previous 52-week high, driven by optimism around the India–EU trade agreement and higher crude prices. Shares of Oil India are up 14% so far in January. Barring 2025, the stock has delivered positive returns in the month of January every year going back to 2021. 

As of 2:15 pm IST share price of OIL India surged to ₹492.65, up ₹44.10 or 9.83% for the day. The stock opened at ₹455.00, touched an intraday high of ₹493.40 and a low of ₹454.50, marking a near 52-week high. The company has a market capitalisation of ₹80,210 crore and a price-to-earnings ratio of 13.42. Oil India offers a dividend yield of 2.44%, with a quarterly dividend amount of ₹3.01, while its 52-week low stands at ₹325.00, reflecting significant gains over the past year. 

Nifty Oil & Gas index Gains Nearly 3% 

Both ONGC and OIL India were among the top gainers on the Nifty Oil & Gas index. The Nifty Oil & Gas index was trading at 11,757.65, up 327.80 points or 2.88% as of 14:38 IST on 28 January 2026. The index opened at 11,429.90 and recorded a day low of 11,413.35. Its 52-week range spans from 9,327.50 to 12,445.70, while the previous close was 11,376.55. Year-to-date returns show a decline of 4.32%, reflecting mixed performance in the sector amid rising crude prices and ongoing developments in upstream oil and gas companies. 

References 

• https://www.nseindia.com/get-quote/equity/ONGC/Oil-&-Natural-Gas-Corporation-Limited 
• https://www.nseindia.com/get-quote/equity/OIL/Oil-India-Limited 

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