Shares of firms related to oil exploration and refineries were in heavy demand on Wednesday, with Reliance Industries and ONGC rallying after the government slashed windfall tax on petrol, diesel, jet fuel and crude oil.
Reliance Industries shares ended 2.47 per cent higher at Rs 2,501.40 apiece on the BSE. During the day, it jumped 4.25 per cent to Rs 2,545.05.
The market valuation of Reliance Industries advanced by Rs 40,516.96 crore to Rs 16,92,230.96 crore.
Shares of Oil and Natural Gas Corporation (ONGC) climbed 4 per cent to settle at Rs 132.55 apiece. During the day, it rallied 7 per cent to Rs 136.40.
Vedanta shares went higher by 6.22 per cent to Rs 253.45.
Among others, Chennai Petroleum Corporation jumped 7.35 per cent, Oil India climbed 5.84 per cent and Mangalore Refinery and Petrochemicals advanced 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," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
In the equity market, the 30-share BSE Sensex rallied 629.91 points or 1.15 per cent to settle at 55,397.53.
On Wednesday, the government scrapped a windfall tax on export of petrol and cut the levy on overseas shipments of diesel and ATF as well as on domestically produced crude oil following a decline in global oil prices.
"The move is definitely positive for companies like RIL, ONGC and Oil India as the decline in windfall tax would mean better and more sustainable margins," said Rohit Khatri, AVP-Fundamental Research, Religare Broking Ltd.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
You’ve hit your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app