ONGC, Oil India share prices rise up to 4% as Israel-Iran conflict flares up crude prices further

Stock Market Today: ONGC and Oil India share prices gained up to 4% on Friday, June 13, amidst rising crude prices, led by the Israel-Iran conflict. ONGC share price was among the top gainers among the Nifty 50 stocks despite the stock market crash. 

Today, the Indian benchmark indices — the Sensex and Nifty 50 — tumbled over 1.5% each.

Rising crude price impact on ONGC, Oil India

These upstream oil producers stand among the beneficiaries of rising crude prices, as they help improve realisations for these oil producers. However, this rise in crude prices may not be favourable for many others.

“The economic consequences of this Israeli strike can be profound if the attack and counterattack by Iran linger long. Israel has declared that the operation will last several days. Brent crude prices have flared up by around 12% to $78. It can rise further if Iran, in retaliation, closes the Strait of Hormuz, severely restricting oil supply,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. 

While sectors that use oil derivatives as inputs, like aviation, paints, adhesives and tyres, will be hit hard, oil producers like ONGC and Oil India will remain resilient, added Vijayakumar.

ONGC, Oil India share price movement

Oil and Natural Gas Corporation or ONGC share price opened at ₹255.55 on the National Stock Exchange on Friday, more than 3% higher compared to the previous day's closing price of ₹247.88. ONGC share price gained further to the intraday high of ₹255.9.

Oil India share price opened at ₹480 and further rose to intraday highs of ₹486, translating into gains of close to 4% for Oil India share price in intraday deals today.

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