US-Iran struggle: Whereas most oil and power shares took a beating amid Center East tensions, ONGC’s share worth confirmed resilience amid the sell-off. In a single month, ONGC shares have shed round 3.50%, whereas the oil PSU main, IOC, has crashed by over 17%. Shares of Hindustan Petroleum Company Ltd (HPCL) and Bharat Petroleum Company Ltd (BPCL) crashed over 22% in a single month, whereas GAIL India shares corrected greater than 14% in a single month.
In response to Indian inventory market consultants, the US-Iran struggle and disruptions within the Strait of Hormuz have pushed Brent Crude oil costs above $100 per barrel. As India meets almost 85% of its oil demand by imports, imported inflation is predicted to place margin strain on oil PSUs. The falling Indian rupee is predicted to do additional harm to grease PSUs in India. Specialists imagine that sturdy fundamentals and ONGC’s built-in upstream mannequin place it because the “lone performer” in a depressing PSU panorama amid the US-Iran struggle.
Resilience within the ONGC share worth
Highlighting the resilience proven by the ONGC shares in the course of the US-Iran struggle, Seema Srivastava, Senior Analysis Analyst at SMC World Securities, stated that ONGC has emerged as a relative outperformer in India’s oil & fuel sector amid the US–Iran struggle and world power volatility, supported by sturdy Q3FY26 financials. The oil PSU reported web revenue of ₹11,946 crore, up over 22% YoY, with revenues at ₹1.67 trillion, reflecting resilience regardless of a 15% drop in crude realisations. Crude output rose marginally to 4.59 MMT, whereas fuel manufacturing remained steady, and a file dividend payout strengthened investor confidence.
“The geopolitical backdrop of war-driven crude upsurge and world fuel shortages performs to ONGC’s strengths as an upstream producer, enabling it to seize greater realisations in contrast to downstream PSUs that face margin compression as a result of regulated pricing. Whereas IOC, BPCL, and HPCL wrestle with subsidy burdens and unstable refining margins, ONGC’s built-in upstream mannequin positions it because the “lone performer” in a depressing PSU panorama,” Seema Srivastava of SMC World Securities stated.
On triggers that enabled ONGC shares to face towards the US-Iran war-induced sell-off, Nitant Darekar, Analysis Analyst at Bonanza, stated, “As an upstream producer, greater crude realisations move on to its topline, making it one of many few PSUs with a real earnings tailwind proper now. The important thing danger, nevertheless, is coverage — a authorities reinstatement of a windfall tax may meaningfully cap upside. ONGC stays a compelling purchase on dips, however buyers ought to watch New Delhi as carefully as they watch crude.”
ONGC share worth: Do you have to purchase?
Whether or not one should purchase ONGC shares, Seema Srivastava of SMC World Securitiessaid that strategic initiatives akin to KG-DWN-98/2 are anticipated to additional raise manufacturing, enhancing its capability to capitalise on elevated power costs.
“Dangers stay from extended battle and home worth controls, however ONGC’s regular operations, sturdy dividend coverage, and upstream leverage make it a uncommon vivid spot in India’s power sector, benefiting immediately from crude upsurge and fuel shortage, the SMC World Securities professional concluded.
ONGC share worth: Technical outlook
Talking on the technical outlook of the ONGC share worth, Ganesh Dongre, Senior Supervisor — Technical Analysis at Anand Rathi, stated that the ONGC share worth is presently exhibiting probably the most promising technical configuration. On the Each day chart, ONGC is forming a bullish flag sample, which generally alerts sturdy upward momentum. The inventory has additionally been persistently sustaining above the Fibonacci retracement degree from its March low, which lies at ₹258, now performing as a key help zone.
“ONGC share is presently buying and selling round ₹269, providing a horny risk-reward ratio. A stop-loss will be comfortably positioned at ₹255, whereas the medium-term upside potential lies between ₹276 and ₹290. This makes ONGC shares a compelling candidate for technically pushed buyers searching for bullish setups,” stated Ganesh Dongre of Anand Rathi.
Disclaimer: This story is for academic functions solely. The views and proposals above are these of particular person analysts or broking corporations, not Mint. We advise buyers to verify with licensed consultants earlier than making any funding selections.
