Shares of corporations associated to grease exploration and refineries had been in heavy demand on Wednesday, with Reliance Industries and ONGC rallying after the federal government slashed windfall tax on petrol, diesel, jet gasoline and crude oil.
Reliance Industries shares jumped 4.25 per cent to Rs 2,545.05 on the BSE. Oil and Natural Gas Corporation (ONGC) rallied 7 per cent to Rs 136.40.
Among others, Chennai Petroleum Corporation jumped 11.38 per cent, Oil India climbed 8.82 per cent and Mangalore Refinery and Petrochemicals superior 4.95 per cent.
“The relief announced by the government for the petroleum sector through reduction in windfall tax and cuts in duties on exports will be a major boost for the sector, particularly for RIL,” mentioned V Okay Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
In the fairness market, the 30-share BSE Sensex was buying and selling 714.52 factors or 1.30 per cent larger at 55,482.14.
The authorities on Wednesday slashed the windfall tax on petrol, diesel, jet gasoline and crude oil following a decline in worldwide charges.
It scrapped a Rs 6 a litre tax on export of petrol and diminished the identical on ATF from Rs 6 a litre to Rs 4. Besides, the tax on diesel has been diminished to Rs 11 from Rs 13 per litre, based on finance ministry notifications.
Further, the Rs 23,250 per tonne extra tax on crude oil produced domestically has been minimize to Rs 17,000 per tonne.