The NSE Nifty index closed 5.15 points up at 18599.0

Oil producers like Oil India and ONGC benefit from higher crude prices as it translates into higher revenues for them

GAIL, India's largest gas company, has infused INR 2,100 crore ($283.7m) in JBF Petrochemicals Ltd, a private sector chemical company it acquired through bankruptcy proceedings. The sum will be used to finance 625 crore of equity and 1,476 crore of debt to complete GAILs bankruptcy resolution plan. The purchase sees JBF become a wholly-owned subsidiary of GAIL from 1 June 2023.

S&P Global Ratings expects a rise in operating cash flows for India's largest oil and gas producer, ONGC, due to higher production volumes and the removal of the windfall tax on crude oil. The increase is expected to help the company maintain its credit quality. S&P predicts that ONGC's domestic production volumes will be up by 8-10% by 2024. Its EBITDA for fiscal years 2024 and 2025 is forecasted to be Rs 1-1.1 lakh crore, while investments of approximately Rs 47,500 crore will be made. Additionally, ONGC has committed to net-zero for scope 1 and 2 emissions by 2038.

Benchmark indices in India closed lower on the last day of May, with the S&P BSE Sensex declining 346 points, and Nifty50 settling at 18,534 levels, amid negative global market signals. The auto and FMCG sectors saw gainings, while bank, metals, and financials dragged. Stocks in focus include Suzlon Energy, which gained 10%, Torrent Pharma, up 6.15%, and ONGC, down nearly 6%. Stoxbox Head-Technical Analyst Rohan Shah advises investors to buy Torrent Pharma, stating the stock has been trading in an ascending channel and Suzlon Energy, stating the stock has risen over 52% and may attract further upward moves above Rs 11.50.

ONGC, Indian Oil, Power Finance Corporation (PFC), REC, SAIL, General Insurance, Oil India, and New India Assurance are among the PSUs trading below their book value. ONGC, which rallied 10% in the last six months, is trading at a book value of 0.71 times. According to the Bloomberg Consensus estimates, the stock is expected to yield 18% in a year.

Motilal Oswal is bullish on ONGC recommended buy rating on the stock with a target price of Rs 215 in its research report dated May 29, 2023.

The NSE Nifty index closed 99.45 points down at 18534.4

Except Information Technology, realty, and healthcare all other sectoral indices ended in the red.

The share touched a 52-week high of Rs 168.95 and a 52-week low of Rs 119.80 on 12 May, 2023 and 06 July, 2022, respectively.

Sharekhan recommended Hold rating on Oil and Natural Gas Corporation with a target price of Rs 170 in its research report date May 29, 2023.

Benchmark indices, S&P BSE Sensex and Nifty50, rose on Tuesday, supported by foreign institutional investor inflows and firm Asian markets. The financial services, services, teck, capital goods, bankex, IT and industrials sectors rallied, while commodities, energy, telecommunication, auto and consumer durables pulled back. Hikal gained 8.5%, while M&M rose 4.08%, though shares in ONGC fell nearly 5%. Technical analyst Viral Chheda recommends investors should buy Hikal at the current price, buy JSW Energy above INR270 ($3.63), and buy RVNL above INR123 when considering limited downside risk and upward potential of 6-8 months.

ONGC’s profitability is directly linked to oil prices. Yet, above the critical threshold of around $75 per barrel, any gain from rising oil prices are offset by an increase in windfall tax.

Indian equity markets began the week by rising due to the positive outlook in global markets and breakthroughs in US debt ceiling negotiations. The S&P BSE Sensex increased 344 points while the Nifty50 settled at 18,598 levels. The consumer durables and metals sectors gained the most, while oil and gas, IT, and energy were the laggards. Among the stocks in focus, Prince Pipes gained 5%, M&M rose by 3.37%, and ONGC fell about 3%. Technical and Derivative Research Analyst at Reliance Securities recommended investors buy Prince Pipes, sell M&M and ONGC.

"We have done our internal workings and are now confident that we can achieve net-zero for Scope-1 and Scope-2 emissions by 2038," Singh said, adding that the company will invest Rs 1 lakh crore towards the same. As part of the initiative, ONGC wants to grow its renewable power portfolio to 10 gigawatts (GW) by 2030 from 189 megawatts at the end of March. Of this, the company has already signed an MoU to set up 5GW and is scouting for opportunities to set up another 5GW.

"We have done our internal workings and are now confident that we can achieve net-zero for Scope-1 and Scope-2 emissions by 2038," Singh said, adding that the company will invest Rs 1 lakh crore towards the same. As part of the initiative, ONGC wants to grow its renewable power portfolio to 10 gigawatts (GW) by 2030 from 189 megawatts at the end of March. Of this, the company has already signed an MoU to set up 5GW and is scouting for opportunities to set up another 5GW.

Chairman Arun Kumar Singh said that ONGC wants to focus on round-the-clock renewable energy projects.

The oil exploration company said that in the last five years, it has spent around Rs 1,44,000 crore on capital expenditure.

The NSE Nifty index closed 99.3 points up at 18598.65

India's top oil and gas producer ONGC will invest Rs 1 lakh crore by 2030 on energy transition projects as it targets net zero carbon emissions by 2038, its chairman Arun Kumar Singh said on Monday. The firm joins fellow state-owned oil and gas firms Indian Oil (IOC), Hindustan Petroleum (HPCL), GAIL and Bharat Petroleum (BPCL) in preparing roadmaps for net zero emissions as part of the nation's commitment to deal with the climate challenge.

Indian state oil firms have invested USD 5.46 billion in buying stakes in four different assets in Russia. These include a 49.9 per cent stake in the Vankorneft oil and gas field and another 29.9 per cent in the TAAS-Yuryakh Neftegazodobycha fields.

ONGC's consolidated net profit fell 53% YoY to INR 5,701cr ($768m) for the March quarter, while revenue from operations increased 5% YoY to INR 1.64 lakh crore. On a standalone basis, ONGC reported a net loss of INR 248cr, compared to a profit of INR 8,860 crore in the same quarter last year. Brokerage firms have mixed views on the company: JM Financial has maintained its buy rating, while YES Securities suggests adding the shares, and ICICI Securities recommends buying with a target price of INR 164 ($2.21).

The brokerage has cut its FY24 PAT estimate by 5% and FY25 PAT estimate by 15% to factor in higher continued provision for SC/GST on royalty, higher dry well write-off, and weak FY23 results. Hence, it has further slashed its TP to INR 200/share (from INR 220/share).

The company reported a rise in its consolidated total income in Q4FY23 to Rs 166,728.80 crore, against Rs 158,660.49 crore in the year-ago quarter.

India's top oil and gas producer ONGC has set June 15 as the start date for its KG basin gas field, seeking a price of USD 12 for the fuel. It will start production with 0.4 million cubic metres per day and ramp it up to 1.4 million by February 5, 2024. It has asked companies to bid for the gas who must also quote a premium above the base price, which is calculated based on 14% of the Brent oil price plus USD 1 per million British thermal unit.

The earnings were also hurt by the rise in exploration cost write-off, which increased 76% year-on-year to Rs 4,469 crore in the fourth quarter.

The Board has recommended a final dividend of Rs 0.5 per equity share for the financial year 2022-23.

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The NSE Nifty index closed 178.2 points up at 18499.35

All sectoral indices ended in the green, with metal, FMCG, information technology, realty, pharma and PSU Bank rising a percent each

ONGC's net sales for the March quarter are seen rising 4 percent YoY to Rs 35,772.5 crore, while a 24 percent YoY growth is likely in the profit after tax at Rs 10,957.9 crore, Kotak Institutional Equities has said

The NSE Nifty index was trading 57.5 points up at 18378.65

Oil India, along with ONGC Videsh, the overseas investment arm of Oil and Natural Gas Corp, are talking to Tullow, Rath said, without elaborating on the size of a possible stake.

The new platform is planning to produce 4-5 MTPA of green ammonia, green methanol and electrolysers at Kakinada in Andhra Pradesh, incurring a capital expenditure of $10 billion.

Oil India, which reported a record-high profit of Rs 6,810 crore for 2022-23, increased its oil production by 5.5% to 3.18 million metric tonnes (mmt) and gas output by 4.4% to 3.18 billion cubic meters (bcm) during the year. The growth is on top of the output expansion that has gone into offsetting the natural decline in matured fields, chairman and managing director Ranjit Rath said.

The idea of the MRPL-HPCL merger had been floated soon after ONGC acquired HPCL from the government five years ago but made little progress. The ministry is now pushing for the merger, which is likely to be a share-swap deal, said the people cited above.

ONGC Videsh has been present in Myanmar, Bangladesh, Vietnam, South Sudan and Columbia for years. In some projects, it has made discoveries and also put them into production while in others, it is looking for a commercially viable find. The massive Mozambique gas project in which ONGC as well as a few other Indian state-run firms are invested has yet to take off due to the security situation in that country.

Oil and Natural Gas Corps (ONGC) crude oil production fell 6% from a year earlier while the output at Oil India Ltd and the private sector producers remained nearly stable. For years, India has found it hard to arrest the decline in crude output as producing fields have natured while new major discoveries have been hard to make.

ONGC Videsh, India's flagship overseas oil firm, has teamed up with Oil India to replace IndianOil for the potential acquisition of a 50% stake in Tullow Oil's $3.4bn oilfield project in Kenya, according to insiders. But, their joint effort faces competition from Chinese energy giant, Sinopec, which reportedly entered the purchasing race because of the delay by the Indian negotiators.

The NSE Nifty index closed 73.45 points up at 18203.4

Jain has been appointed as the Chairperson PNGRB "for a period of five years from the date assumption of charge of the post or till attaining the age of 65 years, or until further orders, whichever is the earliest, on a consolidated pay package of Rs 4.50 lakhs per month (without house and car) or as revised by the Ministry of Finance from time to time," the ACC order of May 15 said.

The windfall tax on crude petroleum has been slashed to nil from Rs 4,100 per tonne, according to a notification issued by the government late on May 15.

India's hydrocarbon exploration could be boosted by a proposal to amend the forest conservation law.The Forest (Conservation) Amendment Bill envisages seismic surveys would not be treated as a non-forest activity but explorers would be granted prompt access to forests, cutting time-consuming permit seeking. A seismic survey is the initial stage to determine evidence of economically viable hydrocarbon resources below the ground.

INDIA-CRUDE/TAX (URGENT)India cuts windfall tax on petroleum crude

ONGC Videsh has drawn the facility and used the funds to repay $500 million in bonds that matured last week. The company had raised $800 million in bonds to meet its financing needs for the ACG project in Azerbaijan in 2013. Bonds worth $300 million with a tenure of five years matured in 2018 while the balance of $500 million with a tenure of 10 years has matured now.