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Shares of oil exploration companies such as Oil and Natural Gas Corporation (ONGC), Oil India and Cairn India are trading higher by over 5% each after oil prices jumped by more than 10% on Thursday, posting their biggest one-day rally in over six years.
Cairn India rallied 6% to Rs 148, ONGC surged 5% to Rs 243, while Oil India was up 4% at Rs 472 on the Bombay Stock Exchange (BSE) in early morning trades.
The front month Brent crude LCOc1 for October more than reversed a week's worth of losses, rising $4.42 to settle at $47.56 a barrel, marking a 10.25% rise, a Reuters report suggests. CLICK HERE TO READ FULL REPORT.
Higher crude prices will result in higher realisation for these oil exploration companies and result in increased profitability for them.
Meanwhile, both these stocks have corrected sharply and quoting more than 50% below their 52-weeek highs on the bourses.
Cairn India rallied 6% to Rs 148, ONGC surged 5% to Rs 243, while Oil India was up 4% at Rs 472 on the Bombay Stock Exchange (BSE) in early morning trades.
The front month Brent crude LCOc1 for October more than reversed a week's worth of losses, rising $4.42 to settle at $47.56 a barrel, marking a 10.25% rise, a Reuters report suggests. CLICK HERE TO READ FULL REPORT.
Higher crude prices will result in higher realisation for these oil exploration companies and result in increased profitability for them.
Meanwhile, both these stocks have corrected sharply and quoting more than 50% below their 52-weeek highs on the bourses.
