Stock prices of Cairn India and ONGC shot up. Know why

Oil explorers Cairn India and ONGC shot up for the second day in trade on Friday after global crude oil prices rose on the back of a partial cut in supplies and a pause on sustained selling.

Crude Oil Futures are set to record their first weekly gain after 11 weeks, snapping their longest losing streak since 1986 as selling abated. Adding to this move was a force majeure announced by Shell's Nigerian unit as it shut two major pipelines owing to theft and leakages in the African country.

Front-month October Brent crude was up 11 cents at $47.67 per barrel as of 0257 GMT. It settled $4.42 higher at $47.56 per barrel in the previous session. U.S. crude was 39 cents higher at $42.95 per barrel, after ending up $3.96 at $42.56 per barrel, its biggest one-day percentage gain since March 2009.

As a consequence, Cairn surged 9.6 rupees, or 6.9 percent, to 148.55 rupees and ONGC added 13.35 rupees, or 5.8 percent, to 244.85 rupees on the National Stock Exchange. Both stocks are at multi-year lows as a more than 60 percent plunge in global crude oil prices in the past one year reflected on the companies' financials.

Image credit: Indiatimes.