Oil and exploration major ONGC surged for the second straight trading session on Monday on sustained fund-based buying. On the BSE, the stock settled at Rs 374.55, up 8.96 per cent over Friday's close. Around 11.23 lakh shares changed hands on the counter.
On the NSE, around 16.12 lakh shares changed hands. A dealer said: "Fund-based activity was seen on the counter subsequent to media reports that the government may sell a minor portion of its equity stake in the company."
In the previous two trading sessions between July 11-15, the scrip has advanced by 13.5 per cent from Rs 330.15. Meanwhile, analysts said, "The spurt on the counter is purely on reports that the Centre is keen to sell a minor stake in the company, which had earlier been struck off the divestment list on 'strategic' grounds."
They said the rise is also on hopes of impressive financial results from the company, on the back of a surge in global crude oil prices.
It may be recalled that after the decontrol of the petroleum sector with effect from April 1, 2002, ONGC was free to sell crude oil at international prices, thereby lifting its profit margin. Earlier, ONGC struck large gas reserves in the Daman offshore field, on the western coast of India.
Initial assessment put the total reserves at 30-50 billion cubic metres or 1 trillion cubic feet. Recently, ONGC pre-paid part of the loans from the World Bank and Asian Development Bank (ADB).
For fiscal 2001-02, ONGC announced a provisional net profit of Rs 5,655 crore, up 8.1 per cent over Rs 5,229 crore in 2000-01.
The provisional net profit has been worked out after making a provision of Rs 3,247 crore towards corporate tax and payment of Rs 6,082 crore towards other statutory dues.
