With a 6.5 per cent gain, ONGC was the top performer among Sensex stocks last week. This was despite weak June quarter results with revenue and profit declining 21 per cent year-on-year. Blame this primarily on the dip in crude oil price which took a toll on realisations.

At $46.1 a barrel, the net realisation (despite no subsidy burden) in the quarter was much lower than the $59.08 a barrel in the year-ago period. Gas price realisation too was lower by a third. Output of both oil and gas fell too. Indications of further price cuts in gas in October were also a dampener.

So, what made the stock move up? Relief perhaps that ONGC’s performance could have been worse had Brent not rallied from sub-$30 levels of February; oil prices are expected to stay range-bound around the $45-60 levels. Next, reports that ONGC is seeking compensation from Reliance Industries for gas migration in the Krishna-Godavari (K-G) basin and indications that ONGC plans to acquire stake in GSPC’s gas field in the K-G basin helped too.

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