RIL, ONGC: Will windfall tax hike dampen upside in oil-linked stocks?

Shares of Oil companies extended decline Wednesday, after the central government hiked the windfall tax effective January 3. 

Oil & Natural Gas Corporation shares tumbled 2.25 per cent, while Reliance Industries, Bharat Petroleum Corporation and Indian Oil Corporation plunged 0.80 per cent, 0.30 per cent and 0.25 per cent, respectively. Hindustan Petroleum Corporation shares were the lone gainer among the pack, rising 1.45 per cent on Wednesday.

The Central Board of Indirect Taxes and Customs has raised windfall tax on petroleum, crude, and aviation turbine fuel effective from January 3. The windfall tax on crude oil has been increased to