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Tuesday, September 27, 2016

ONGC Shares Slips 5% in Two Days Amid Divestment Buzz

ONGCThe government is looking forward to sell 5 per cent stake in state-run oil exploration company Oil and Natural Gas Corporation (ONGC).  As per reports, in order to reach its divestment target of Rs 56,500 crore for this financial year, the government has been on the front to raise revenue and will hopefully divest 5 per cent of its stake in ONGC to raise approximately Rs 10,000-12,000 crore. The government is eager to offload its 5 per cent stake in ONGC the third quarter of this fiscal year. Following this development, ONGC shares have slipped 5.45 per cent in the past two trading sessions. At present market price, 5 per cent of ONGC is valued at Rs 11,100 crore and the government’s aggregate shareholding currently stands at 68.93 per cent. For the last few years, both UPA and NDA have fallen short of their divestment target. In the past, volatile market conditions and lack of interests from investors, as they did not get the target companies worth investing in at the price being quoted by the government, have been accused for not meeting the divestment target.
ONGC share price was trading 0.86 per cent lower at Rs 247.40, underperforming the Nifty which was up 0.3 per cent. The stock has an ADM or Average Daily Movement of 5.79. Its average volume of 20 days stands at 5665772. The market cap of ONGC amounts to Rs. 213502.26 (Cr) while the book value stands at 215.94.
ONGC is analyzed by Dynamic Levels as the top 500 performing stocks for the June quarter among the 1700 stocks which are listed on the NSE.  ONGC is fundamentally strong and is safe for investment, as per Dynamic analysts.In order to know about the support and resistance levels of the scrip and also its fundamentals and financials, please a pay a visit to ONGC share price history.

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