Oil India, ONGC Shares Fall as Crude Prices Drop 16%

Shares of Oil India, Oil and Natural Gas Corporation (ONGC) and other upstream oil companies declined on Thursday as global crude oil prices extended their losses for a fourth consecutive session. Oil India shares dropped more than 5%, while several other oil-related stocks also traded lower amid a sharp fall in international crude benchmarks.

Crude oil prices have fallen nearly 16% so far this week, putting pressure on companies involved in oil exploration and production. Since their revenues are closely linked to crude oil realisations, a sustained decline in oil prices can affect their earnings expectations and investor sentiment.

Key Highlights

• Oil India shares fell more than 5% to around Rs 435 on the NSE.
• ONGC shares declined approximately 2% during Thursday’s trading session.
• Brent crude futures fell 1.03% to $93.65 per barrel, while WTI crude dropped to $86.98.
• Global crude oil benchmarks have declined nearly 16% so far this week.
• Chennai Petroleum and Mangalore Refinery shares also recorded notable losses, while Manali Petrochemicals traded higher.

Why Are Oil India and ONGC Shares Falling?

Upstream oil companies explore and produce crude oil, making their financial performance sensitive to changes in global oil prices. When crude prices rise, these companies may receive higher realisations for the oil they sell. Conversely, falling prices can reduce expected revenue per barrel and put pressure on earnings estimates.

The latest decline in crude prices has therefore weighed on investor sentiment towards exploration and production companies such as Oil India and ONGC. The market is reassessing the geopolitical risk premium that had previously supported oil prices amid concerns about potential disruptions to global supplies.

Expectations that geopolitical tensions could ease have contributed to the recent sell-off in crude oil. However, the direction of prices will continue to depend on developments in the region, global supply conditions and demand expectations.

Crude Oil Prices Extend Losses for Fourth Consecutive Session

International crude benchmarks remained under pressure on Thursday. Brent crude futures declined 1.03% to $93.65 per barrel, while US West Texas Intermediate (WTI) crude futures fell 1.29% to $86.98 per barrel, according to the figures cited in the market update.

The latest declines followed a sharp fall of more than 8% in both benchmarks during the previous trading session. The drop took crude prices to their lowest closing levels since August 31.

With oil prices down nearly 16% so far this week, investors are closely monitoring whether the decline continues or prices stabilise. A sustained fall could influence earnings expectations across the energy sector, particularly for companies whose revenues are directly linked to crude oil realisations.

Oil India, ONGC and Other Energy Stocks in Focus

Oil India recorded the steepest decline among the major upstream stocks mentioned in the market update. Its shares fell more than 5% to around Rs 435 on the NSE. ONGC shares were down approximately 2% at the time of writing.

Other stocks across the oil and energy segment also traded lower. Mangalore Refinery and Petrochemicals declined around 4%, while Chennai Petroleum Corporation fell 5.26%. Jindal Drilling and Industries slipped 0.3%, and Panama Petrochem declined 1.73%.

These companies operate in different parts of the oil and energy value chain. Oil India and ONGC are involved in exploration and production, while Mangalore Refinery and Chennai Petroleum operate in refining. Their share prices can respond differently to changes in crude prices because their business models and cost structures are not the same.

Manali Petrochemicals Shares Trade Against the Trend

Manali Petrochemicals was among the few stocks in the segment trading higher on Thursday, gaining around 2%. Its positive movement came as investors awaited the company’s quarterly financial results.

In an exchange filing, Manali Petrochemicals said its board of directors would meet on November 6, 2026, to consider the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026.

The upcoming results may provide investors with information about the company’s recent financial performance. The stock’s gains, however, should not automatically be attributed to expectations of a particular result.

What Should Investors Watch Next?

Investors tracking Oil India, ONGC and other energy stocks will be watching global crude oil prices, geopolitical developments and the companies’ financial performance. For upstream producers, the level at which crude prices stabilise can influence revenue expectations and market sentiment.

It is also important to distinguish between exploration and production companies and refiners. Lower crude prices can put pressure on upstream realisations, while the impact on refining businesses depends on factors such as input costs, product prices and refining margins.

The recent fall in crude prices has triggered selling across several oil-related stocks, but the impact may vary from one company to another. Investors should assess individual business fundamentals, earnings outlook and market risks rather than treating the entire energy segment as a single category.

Conclusion

Oil India and ONGC shares declined on Thursday as crude oil prices extended their losing streak to four sessions. With Brent and WTI benchmarks falling sharply and crude prices down nearly 16% so far this week, concerns over lower realisations have weighed on upstream oil producers. Investors will now monitor global oil prices and upcoming corporate results to assess the outlook for energy stocks.