Country's largest crude oil stock is plummeting. Know why

Shares of ONGC fell 1.3 percent, outpacing the decline on the broader market, on news that the oil explorer will be cutting its gas output by 40 percent to start maintenance work at one of its major fields.

ONGC will carry repair work in two pipelines evacuating gas from its Bassein field in the western offshore pocket, the company said. The repair will last 20 days, starting from July 7th to July 27th.

Gas from its western fields accounts for 50 percent of the total output. This shortfall, over 20 days, will impact the second quarter earnings at the company, but overall the annual output will mostly be unaffected.

ONGC was trading 3.25 rupees lower at 305.95 on the NSE. The stock is trading around its 20-day moving average.

(Image credits: indiatimes)