Mumbai: Despite 7% fall in index heavyweights Reliance Industries – at The Sensex on Friday ended 111 points lower at 52,908, down nearly 800 points from the day’s low – on the back of the government’s decision to hike tax on petrol, diesel and jet fuel exports. With RIL, ONGC And Oil The government’s decision to increase the cess on domestic production of crude also saw a sharp fall in stock prices. Both the decisions were aimed at curbing domestic inflation.
The combined impact of government decisions left investors a little over Rs 1.5 lakh crore poor as RIL fell 7.1%, its biggest fall in 18 months, while ONGC lost over 13% and OIL lost 15%. Globally, with the rise in crude oil prices in the last one year, many companies were making a killing by exporting petrol and diesel. To curb such high profits, governments around the world are levying levies, often referred to as windfall taxes. Analysts said that on Friday, India too followed that path.
During the early trade of the day, some jewelery stocks were also impacted by the hike in import duty of gold, but given their high inventory levels, the valuations of which will rise on the back of increase in the imported value of the yellow metal, most of them in the market. Players said the stock recovered and closed flat.
FacebookTwitterinstagramKu APPyoutube