Shares in Oil and Natural Gas jumped 5 per cent, after crude oil prices surged 7 per cent, following Iran's agreement towards a Russia-Saudi-led move to freeze production.
Crude oil has fallen sharply in the last few months, due to large scale supply and a demand glut across the globe. This has led to a sharp drop in stock prices as well, as oil rich sovereign funds have sold heavily in the equity markets to meet budget deficits.
ONGC, Oil India and Cairn India have slumped as crude oil prices continue to fall. ONGC reported sharp drop in its net profits for the quarter ending Dec 31, 2015.
The government owned Oil and Natural Gas Corporation posted a 64-per cent decline in net profit for the December quarter, on the crude oil price slump and provisioning for impairment of assets. Net profit was Rs 1,285 crore against Rs 3,571 crore.