ONGC shares are seen rallying on bourses on April 15, a weak market day where BSE Sensex is down by 500 points at 10.45 am. ONGC shares are up by 3.63 percent trading at Rs 275 per share.
ONGC shares alone are seen contributing to 200 points to recovery of BSE Oil & Gas index. The index is seen recovering by more than 1,000 points from day’s low. The index made a low of 27,339 and is trading near 28400 levels, staging a recovery lead by IGL, ONGC, GAIL, Linde India and Petronet LNG.
In the derivative segment, ONGC is one of the most active counter with action seen in 270 strike price CE and 280 strike price CE. Darpan Patil of Rupic consultancy believes that ONGC is near its 2014 multiyear breakout.
ONGC shares are rallying after Jefferies initiated a ‘buy’ call with Rs 390 per share target price. According to Jefferies, the ONGC shares are trading at a steeper discount to the benchmark Nifty compared to its long-term average. "The valuation does not capture adequately due to its sharp discount as against the Nifty," they said in a note.
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BSE Oil & Gas index outperforms
Almost all the sectoral indices are down trading in red except BSE Oil & Gas index, which is up by 0.77 percent. BSE Oil & Gas index has been one of the top performing indices in 2024, up by more than 22 percent on year to date basis. BSE Oil & Gas index has displayed one of the best outperformance over BSE Sensex in a six-month period since November 2023. Since November 2023, BSE Oil & Gas rose by 55 percent while BSE Sensex has gained by 15 percent.
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