Oil India Jumps 16% in 2 Days, ONGC Hits 15-Month High: What’s Driving the Rally

Shares of state-owned oil exploration companies continued to rise on Thursday, even as the broader market remained under pressure. Oil India and Oil and Natural Gas Corporation (ONGC) gained up to 6% in intraday trade on the BSE, while the Sensex was down over 0.5%.

Oil India Hits 52-Week High

Oil India shares touched a fresh 52-week high of ₹519.80 during intraday trade, rising 6%. 

Over the last two trading sessions, the stock has surged 16%, reaching its highest level since November 2024.

ONGC Touches 15-Month High

ONGC shares climbed around 3% during the day to hit a 15-month high of about ₹275.75. Over the past two sessions, the stock has gained nearly 11%.

ONGC later clarified in an exchange filing that the recent rise in its share price was mainly due to higher global crude oil prices.

Main Reason: Rise in Global Crude Oil Prices

ONGC and Oil India are engaged in exploration and production of crude oil and natural gas. Their earnings are closely linked to global energy prices.

Crude oil prices have risen from around $60 per barrel in early January to nearly $67, an increase of about 10.5% in the past three weeks. Prices also moved higher on concerns over supply disruptions and falling US crude inventories.

ONGC–Reliance Pact Boosts Long-Term Outlook

ONGC and Reliance Industries recently signed a resource-sharing agreement for deepwater oil and gas projects along India’s East Coast, including the Krishna-Godavari basin and Andaman offshore areas.

The agreement is supported by the Oilfields (Regulation and Development) Amendment Act, 2025, which allows companies to share infrastructure to reduce costs and speed up project execution.

ONGC Strengthens Future Production Plans

ONGC is working on reviving key fields such as MH and KG-98/2, while also focusing on deepwater and ultra-deepwater exploration. These efforts are aimed at offsetting production declines from older fields.

The company is also improving efficiency through cost controls and greater use of digital systems, which management believes will support performance in the coming quarters.

Also Read: TCS Announces USD 37 Million Investment to Build Largest Delivery Centre in Brazil!

Oil India’s Refinery Expansion Update

Numaligarh Refinery, a subsidiary of Oil India, is expanding its capacity from 3 million tonnes to 9 million tonnes per year. Once completed, the refinery will also begin processing imported crude oil for the first time.

The expansion is expected to be commercially completed by the end of the year, although operations have seen some delays.

Conclusion

The sharp rise in Oil India and ONGC shares is largely driven by higher global crude oil prices and improving long-term growth prospects. With supportive energy prices, strategic partnerships, and capacity expansion underway, investor sentiment around these oil PSUs remains strong.

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