Oil & Gas

India Energy Export Tax Sends Reliance Shares Down 8.7%

 

Shares in India energy stocks, including Reliance Industries, fell sharply on Friday after the government raised taxes on fuel exports.

The oil-to-retail conglomerate, India’s most valuable company, shed $19.35 billion in market value. Its stock plunged as much as 8.7%, marking its biggest intra-day slide since November 2020.

New Delhi imposed a 6 rupee per litre tax on petrol exports and a 13 rupee per litre tax on diesel exports.

Other India energy stocks, including ONGC, sank in early trading after the government raised taxes on exports of diesel, petrol, and jet fuel.

“This will dent Reliance profits, of which the oil refining business was roughly 40% in the fourth quarter,” said Deepak Shenoy of the Capitalmind brokerage.

 

ALSO SEE: Concerns Rise That India is Exporting Russian Oil to Europe

 

 

Nifty 50, Sensex Slide

The NSE Nifty 50 index dropped as much as 1.7% to 15,511.05, while the S&P BSE Sensex slid 1.74% to 52,094.25. The indexes on Thursday capped their worst quarter since the early days of the Covid-19 pandemic.

Among other India energy stocks, state-owned ONGC and refiner Mangalore Refinery and Petrochemical slumped 10% each, while Vedanta dropped 7.6% to its lowest in 16 months.

The rupee hit a fresh record low of 79.11 against the dollar, versus Thursday’s close of 78.97.

 

  • Reuters, with additional editing by George Russell

 

 

READ MORE:

India Sails to Rescue of Russian Oil Tankers Hit by Sanctions

 

Indian Imports of Russian Oil up 25-Fold From February – WSJ

 

HSBC Private Banking Plans to Relaunch in India

 

India Rejects China Car Firm Great Wall’s Bid to Buy GM Plant

 

Indian Rupee Hits Record Low Amid Inflation, Growth Fears

 

 

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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