Oil & Gas Stocks Rally after Govt Cuts Windfall Tax; OIL, ONGC Top Gainers

The Indian stock market scaled new highs on December 20, 2023. At 11:25 AM, Sensex was up 283 points at 71721 mark. Nifty jumped 100 points and was trading at 21552 level.

The sector which outperformed other indices was Nifty Oil & Gas which jumped over 2 percent. This has resulted in the sector hitting a new 52-week high on NSE.

The move comes after the government cut windfall tax on petroleum crude and diesel and on steady power demand, according to a Reuters report.

The tax, levied in the form of Special Additional Excise Duty or SAED, on domestically produced crude oil has been reduced to Rs 1,300 from Rs 5,000 per tonnes, according to an official notification.

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SAED on the export of diesel has been reduced to Re 0.50 a liter from Re 1 per litre. However, the levy on export of jet fuel or ATF has been hiked to Rs 1 per litre from nil earlier. SAED on petrol will continue to be zero.

The top gainers from the oil & gas space included Oil India Limited which zoomed over 13 percent followed by ONGC and Gujarat State Petronet which added 2-4 percent each. These were followed by Castrol India, Manahagar Gas, Reliance Industries and GAIL India.

As a result, stocks including Oil India Limited, ONGC, Mahanagar Gas, Indian Oil Corporation and Chennai Petroleum Corporation hit new 52-week high on NSE.

ONGC was also the top gainer from the Nifty50 index.

Nifty Oil & Gas gained over 10 percent in the last one year while Nifty has gained almost 17 percent in the same period.

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