GAIL, ONGC hit 52-week highs as Brent crude cracks $70 per barrel

Updated : March 08, 2021 12:30 PM IST

ONGC rallied as much as 6.4 percent to its 52-week high of Rs 122.30 per share on BSE.

GAIL jumped 7.3 percent to hit its 52-week high of Rs 157.95 per share.

Shares of ONGC and GAIL hit their respective 52-week highs on Monday, surging up to 7 percent after crude oil prices hit the highest level since January 2020.

Brent crude prices jumped above $70 a barrel for the first time since the COVID-19 pandemic began, while US crude touched its highest in more than two years, following reports of attacks on Saudi Arabian oil facilities. The crude oil prices also jumped on optimism about the demand outlook as the global economy recovers.

ONGC rallied as much as 6.4 percent to its 52-week high of Rs 122.30 per share on BSE while GAIL jumped 7.3 percent to hit its 52-week high of Rs 157.95 per share.

Brent and WTI prices are up for the fourth consecutive session after OPEC and their allies decided to keep production cuts largely unchanged in April. Despite fast-rising crude prices, Saudi Arabia’s oil minister has voiced doubts about the on-demand recovery

On Sunday, Yemen’s Houthi forces fired drones and missiles at the heart of Saudi Arabia’s oil industry including a Saudi Aramco facility at Ras Tanura vital to petroleum exports, in what Riyadh called a failed assault on global energy security.

"The recent rebound in crude oil prices has been driven by a gradual recovery in the global economy and thereby, improving demand for crude oil even as it remains below pre-Covid levels," brokerage house Kotak Securities said in a report.

Meanwhile, global brokerage JPMorgan remained bullish on ONGC and hiked its target price. It has an 'overweight' call on the stock with the target raised to Rs 190 per share from Rs 145 earlier. It also increased EPS estimates by 46 percent and 32 percent for FY22 and FY23.

For the December quarter, ONGC's quarterly profit slumped two-thirds mainly on lower oil and gas prices. Its Q3 profit shrank 67.4 percent from a year earlier to Rs 1,378 crore. Revenues fell 28 percent to Rs 17,024 crore.

Meanwhile, GAIL reported a 19 percent rise in Q3 net profit after an uptick in petrochemical margin more than neutralised losses on gas marketing. Net profit of Rs 1,487.33 crore was posted in the December quarter as against Rs 1,250.65 crore in the same period a year back.

Published : March 08, 2021 12:30 PM IST

GAIL, ONGC hit 52-week highs as Brent crude cracks $70 per barrel

You May Also Like

Closing Bell: Sensex, Nifty end flat as IT gains, banks drag; markets down around 1.5% for the week

Q4 Portfolio changes: Rakesh Jhunjhunwala cuts stake in 3 firms, adds in 1; Check out

ALCOA's strong Q1CY21 augurs well for Hindalco, NALCO, Vedanta; here's why

Trending on CNBC-TV18

recommended for you