Mumbai: Oil and Natural Gas Corp. Ltd (ONGC) on Friday beat India’s second largest software exporter Infosys Ltd to become the fifth most valuable company in India by market capitalization.
Data from BSE showed that ONGC had a market capitalization of Rs2.37 trillion, after its shares advanced 1.65% at the close of Friday’s trading. In the last three months, ONGC shares have gained over 19.72%. They have gained 14.32% so far this calendar year, data showed.
“Currently the shares of ONGC have started moving up mainly because of rise in global crude oil prises. However, one cannot be sure how much oil prices will rise. We have a target in the range of $45-55 a barrel and as long as oil remains in this range it is favourable to ONGC,” said Deven Choksey, managing director, K.R. Choksey Securities Ltd.
However, there is the overhang of a follow-on public offer from the government in the near term which can keep ONGC stock prices in check, Choksey added.
Shares of Infosys fell 2.34% to Rs1,027.4. Its market capitalization stood at about Rs2.36 trillion. The company said that its revenue for the three-month period ended 30 September totalled $2.58 billion, compared with $2.5 billion in the June quarter.
“Infosys is currently passing through a structural reinvention phase wherein the company is trying to realign its business model according to its customer requirements. So obviously its a transition process for the company that can result in uncertainty on earning growth,” Choksey said.
TCS is India’s most valuable company with a market capitalization of Rs4.66 trillion, followed by Reliance Industries Ltd, HDFC Bank Ltd and ITC Ltd at Rs3.49 trillion, Rs3.21 trillion and Rs2.90 trillion, respectively, data showed.