Software major TCS has overtaken state-run ONGC in terms of market capitalisation. TCS is now the third most valued company after Coal India and Reliance Industries.
The oil major has fallen to number four position for the first time ever. Its market cap is down nearly Rs 40,000 crore since April-end. Meanwhile, TCS market cap is up Rs 4,000 crore since April-end.
The government is shooting ONGC in the foot, says CNBC-TV18’s Udayan Mukherjee. “I feel bad for ONGC because it is a good franchise,” he says.
Things are going well for crude globally, so in this framework for ONGC to lose Rs 40,000 crore of market cap with crude at USD 115 a barrel, he says, seems very sad. "That’s the cross which all PSU oil companies have to bear," he adds.
"I worry about the ONGC FPO because having lost so much of its market cap, would the government be brave enough to go out and do an offering right now because that will immediately mean that the stock price may actually drift even lower from here. The policy there remains a very irresolvable issue," he says.
Source: www.moneycontrol.com
Ravi Jhawar
Summer Intern-Technical Analyst
DENIP Consultants. Pvt. Ltd.
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