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


by Sandip Das on 20 December 2023,  5 min read

Oil & Gas Stocks Rally after Govt Cuts Windfall Tax; OIL, ONGC Top Gainers - MyDhanush Blogs by Ashika

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.

Also Read: Top 2 stocks by Ashika Research which can return up to 19%

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.

Company Name Last Traded Price (Rs) Change (Rs) % Change
Oil India Limited 390 48.60 14.24
ONGC 210.60 10.30 5.14
Mahanagar Gas 1210.10 20.30 1.71
Gujarat State Petronet 292.70 4.80 1.67
Castrol India 154.80 2.35 1.54
Source: NSE

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.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

Spread the love