Shares of ONGC have suffered huge losses to the tune of 2.82% in share price to reach a day's low of Rs. 170.70 on the BSE. On the NSE, the stock had tumbled by over 3% to reach the day's low of Rs. 170.60.
The stock is expected to be reacting to the news that the government may likely ask the oil exploring company to bear fuel subsidy and help reduce the price of petrol and diesel as the centre is unwilling to cut state taxes on the fuel.
This way the oil marketing companies including the likes of HPCL, IOC etc will be able to sell essential fuel commodity at a lower rate than market price.
As per sources, the meeting to reach the consensus on subsidy share plan is currently underway and is expected to be reached as early as Friday.
At the same time, as per the agency news, 13 serving retired executives are reported to be booked by the CBI in connection to their alleged involvement in an scam valued at Rs. 80 crore.
At the time of reporting, the stock of ONGC was quoting down by 3.07% at Rs. 171.90 on the BSE.