ONGC shines bright

In this market, ONGC is shinning like a bright diamond. The stock opened higher today at Rs.168 and went up to an intraday high at Rs.172.65, up some 5% and not too far from its 52-week high of Rs.176.40. Volumes are up almost 1.5-times.

The stock is up after oil prices soared more than 6% to level not seen since 2008 after USA and European allies mulled a Russian oil import ban.

The situation gets more tight with delays in the potential return of Iranian crude to global markets. The fear of supply getting hit over the next few days is expected to fuel the prices further upwards.

Higher oil and gas prices means increased profitability for ONGC.