ONGC hits all time high on BSE

State-owned Oil & Natural Gas Corp (ONGC) on Monday rallied over 2 per cent to hit an all-time high on the Bombay Stock Exchange (BSE), fuelled by the company's plans to make a joint bid with PetroVietnam for British Petroleum's (BP) Vietnam assets.

Shares of the oil and gas major settled at Rs 1,375.90, up 1.5 per cent, on BSE. During the day, the scrip had gained 2.39 per cent to touch a new high of Rs 1,388.

The stock witnessed a similar move on the National Stock Exchange and zoomed 1.99 per cent to close at Rs 1,383. In terms of volume, about 12.49 lakh shares of the company were traded on the bourses.

The company is finalising the valuation for a potential takeover of troubled energy giant British Petroleum's stake in a Vietnamese gas project, after which a bid will be made in conjunction with PetroVietnam.

Marketmen feel the movement in the stock is powered by the oil major's expansion plans. Besides, the counter rose on heavy buying amid buoyant investor sentiment and a firm broader market.

The proposed deal involves buying out BP's 35 per cent stake in $1.3-billion Nam Con Son gas project in Vietnam, which has two offshore gas fields, a pipeline and a power project.

ONGC's overseas arm, OVL, already owns a 45 per cent interest in the project, while the remaining is owned by Vietnamese state-owned PetroVietnam.

A significant spurt in the shares of ONGC helped the gain in the oil and gas index on BSE, which settled 261.36 points higher at 10,436.47. Among the 13 indices, the BSE-Oil & Gas index emerged as the second highest gainer.