ONGC Faces Significant Volatility Amid Declining Operating Profit Growth and Market Challenges

Oil & Natural Gas Corporation (ONGC) has experienced significant volatility today, reaching a new 52-week low of Rs. 205. The stock has underperformed the oil exploration and refineries sector, declining by 1.16% and marking a three-day consecutive fall of 15.07%. Opening with a gap down of 5.53%, ONGC touched an intraday low of Rs. 205, reflecting a 9.29% drop.
In terms of technical indicators, ONGC is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signaling a bearish trend. The broader market context shows the Sensex recovering from a significant gap down opening, yet still trading 3.01% away from its own 52-week low.

Financially, ONGC has reported a decline in operating profit growth over the past five years, with negative results in the last three quarters. The company's return on capital employed (ROCE) stands at 12, and it maintains a low debt-to-equity ratio of 0.39. Despite the challenges, ONGC offers a high dividend yield of 6.09%, and its market capitalization of Rs. 2,84,314 crore positions it as the second-largest player in the sector, accounting for 11.85% of the industry.