Shares of oil and gas majors Oil and Natural Gas Corporation (ONGC) and Indraprastha Gas (IGL) partially recovered on Friday from the losses in the past few sessions on the back of the Russia-Ukraine geopolitical crisis. Shares of both the companies were in the green following upbeat brokerage commentary and amid an overall positive sentiment in the market.

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ONGC shares jumped to an intraday high of Rs 160.40, up 2.4 percent from its close, on BSE. The stock was trading 1.95 percent higher at Rs 159.70 at 12:30 pm.

Global brokerage Morgan Stanely has maintained its overweight call on ONGC. It sees a 65 percent upside in the oil company’s stock as it has set a target price of Rs 263 per share, which was quoted at Rs 159.05 on BSE at the time of writing.

The brokerage remains positive as it expects domestic gas ASPs to double by April 2022. Every $1/Metric Million British Thermal Unit (mmBtu) change in gas prices affects ONGC’s earnings by 5-8 percent, the brokerage said, adding that gas accounts for 50 percent of the firm’s domestic hydrocarbon production

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With the Russia-Ukraine crisis escalating and oil surging past $100 a barrel, ONGC shares erased 3.77 percent of investors’ wealth in the past five days as against benchmark Sensex which fell 2.72 percent during the period.

IGL shares surged 4.9 percent to Rs 349.45 in intraday trade. At 12:30, IGL stock was trading 3.56 percent higher at Rs 345 on BSE.

Jefferies has a buy rating on the stock with a target price of Rs 620 per share, which means the brokerage firm expects a 44 percent upside in the stock.

After a 38 percent underperformance since September 2021, the company is now seeing interest, Jefferies said. It added that apart from ECs, there has been a sharp rise in gas costs, which is a key concern.

The brokerage remains positive on the back of strong pricing power, staggering nature of price hikes, higher crude, and headroom in CNG economics, it said.

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