ONGC

While most oil and energy stocks took a beating amid Middle East tensions, ONGC's share price showed resilience amid the sell-off. In one month, ONGC shares have shed around 3.50%, whereas the oil PSU major, IOC, has crashed by over 17%. Shares of Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) crashed over 22% in one month, whereas GAIL India shares corrected more than 14% in one month. The US-Iran war and disruptions in the Strait of Hormuz have driven Brent Crude oil prices above $100 per barrel. As India meets nearly 85% of its oil demand through imports, imported inflation is expected to put margin pressure on oil PSUs. The falling Indian rupee is expected to do further damage to oil PSUs in India. Experts believe that strong fundamentals and ONGC’s integrated upstream model position it as the “lone performer” in a gloomy PSU landscape amid the US-Iran war.