ONGC is trading near its 52-week low. heres the reason

But here's the surprising part… crude oil prices have remained elevated. So why is the stock still under pressure? 👀

slipped to around ₹220 on October 8, marking a fresh 52-week low. The stock had also fallen for several consecutive sessions. Normally, higher crude oil prices should benefit an upstream company like ONGC because it produces crude oil. But the relationship isn't that simple. Policy restrictions, government levies and pricing controls can limit how much of the global oil-price increase the company actually captures. Analysts have previously highlighted these factors as reasons ONGC may not benefit fully from elevated crude prices. There's also a broader market factor. Foreign portfolio investors withdrew ₹44,166 crore from Indian equities in October so far, amid elevated crude prices, a stronger US dollar and high US bond yields. That selling pressure can weigh on large stocks even when their individual business outlook hasn't changed dramatically. But ONGC's long-term story isn't standing still. The company recently announced a gas discovery in the Mahanadi deepwater basin off Odisha, adding another development to its exploration efforts. So, I would watch three things closely: crude oil realisations, production growth and whether new discoveries eventually translate into commercial output. 📊 Because higher oil prices alone don't guarantee higher profits. For ONGC, what matters is how much revenue it can actually retain from every barrel it produces.