State-owned Oil and Natural Gas Corp (ONGC) today tanked nearly 2 per cent to a month's low before making a marginal recovery in the early trade, a day after it reported a 24.5 per cent decline in its net profit for the quarter ended June 30.
Disappointed by the results, shares of ONGC plunged 1.72 per cent to a month low of Rs 1,221.10 on Bombay Stock Exchange. However, the scrip made marginal recovery of 0.62 per cent later in the morning at Rs 1,228.80.
On National Stock Exchange, too, the scrip slid by 1.49 per cent, to trade at Rs 1,227.95.
"The results of the company are not that great, so the investors are booking profits. Such negative reaction is normal after results, especially, when the recent upside in the stock was already trapped by the investors," Unicon Financial Solutions CEO Gajendra Nagpal said.
Meanwhile, the broader benchmark, Sensex, too, was trading weak at 17,931.76, down 0.33 per cent from previous close, on the poor quarterly show by companies including ONGC.
Yesterday, the oil and gas major had reported a net profit at Rs 3,661.14 crore for the quarter ended June 30, against Rs 4,847.92 crore in the same period previous fiscal, after its fuel subsidy payout jumped nearly 12-folds.
ONGC had paid Rs 5,515 crore in April-June quarter towards fuel subsidies as against Rs 429 crore in the year-ago period.
