ONGC Shares Rally More Than 6% in Early Trade

Mumbai, May 12: Shares of Oil and Natural Gas Corporation Limited rose by 6.09% in early trade on Tuesday against the previous closing price. The stock was trading at ₹298.10 on the bourses as compared to the previous close of ₹281.00, representing an intraday gain of ₹17.10. The share witnessed an intra-day high of ₹299.15 and low of ₹286.85. It opened the day’s trade at ₹286.90 and has been rising consistently since then.

ONGC’s bulls took control on Tuesday as the stock rallied sharply, nearing its intra-day high of ₹299.15. The strong buying pressure has pushed it more than 6% higher on the day and indicates a lack of sellers at these levels. It can also be interpreted as positive investor sentiment around ONGC today.

How did ONGC perform last week?

ONGC had a shaky week before its big up-move today. The oil stock opened the weekly trading session around ₹290 on Monday, May 5, but witnessed selling in the following two sessions. It fell to ₹281.26 on Tuesday, May 6 and rebounded marginally to ₹283.73 on Wednesday, May 7. Selling resumed on Thursday, May 8, and ONGC hit a weekly low of ₹279.47. The stock recovered to around ₹280 where it consolidated for two days (between May 9 and May 10) before surging over ₹298 in today’s session.

ONGC’s weekly price chart reveals a classic V-shaped partial recovery pattern, where a stock experiences a strong downfall and then rapidly rebounds. This formation often attracts renewed institutional interest in the counter. Traders witnessed the sharp recovery today as ONGC cut almost all of its losses in a single trading session. Institutional interest is a strong indicator of positive long-term prospects for a stock.

ONGC Announcement by Union Minister

Union Minister Hardeep Singh Puri on Monday announced a rationalisation of royalty rates for India’s upstream oil and gas sector, revising the rules governing how companies pay the government for extracting crude oil, natural gas and casing head condensate — a light liquid hydrocarbon that separates from natural gas during production.

The revised schedule, which follows the 2025 amendments to the ORD Act and PNG Rules, removes long-standing inconsistencies across regulatory regimes to create a more stable, predictable and investor-friendly framework. The move comes as crude prices have surged on account of the West Asia war — the same pressure that prompted Prime Minister Modi to urge Indians to conserve fuel — and can be read as a deliberate push to encourage domestic oil production, reduce import dependence and strengthen India’s long-term energy security.

Source:

• https://www.nseindia.com/get-quote/equity/ONGC/Oil-&-Natural-Gas-Corporation-Limited
• https://www.livemint.com/news/india/hardeep-puri-announces-royalty-rationalisation-for-crude-oil-natural-gas-and-condensate-in-landmark-upstream-reform-11778554264307.html