Shares of state-owned Oil and Natural Gas Corp (ONGC) today settled with gains of nearly 2 per cent after the company acquired stake in UAE's oil offshore concession and posted good earnings.
On February 10, India and the UAE signed a concessional agreement awarding a consortium of Indian oil companies, led by the ONGC, a 10 per cent stake in Abu Dhabi's offshore oil concession.
The state-owned Oil and Natural Gas Corp (ONGC) on February 9 had reported a 15 per cent rise in the December quarter net profit as higher prices made up for fall in output.
The MoU between Indian consortium (OVL, BPRL and IOCL) and state-run Abu Dhabi National Oil Company (ADNOC) was signed for acquisition of 10 per cent participating interest in the offshore Lower Zakum Concession.
Reacting to the development, shares of the company opened on a bullish note at Rs 192, then gained further momentum and touched a high of Rs 194.50, up 3.59 per cent over its previous closing price.
The stock ended the day at Rs 190.85, up 1.65 per cent on the BSE.
On the NSE, the stock opened at Rs 192, then surged to a high of Rs 194.50 and finally ended at Rs 191.30, up 2.11 per cent over its previous close.
"As sensitivity to oil prices is high, any sharp rally in oil prices remains a key trigger for ONGC," Nomura said in a research note.
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