Adani Wilmar, Ruchi Soya shares slip 5% for second session, here's why

Shares of major edible oil producers Adani Wilmar and Ruchi Soya hit lower circuit for the second straight session today after the government exempted customs duty and agri cess on yearly import of 20 lakh MT each of crude soyabean and sunflower oil till March 2024 to cap domestic prices.

The move by the government will reduce price of edible oil in the Indian market, leading to reduction in margins for the oil producers. This led to weak sentiment around the stocks of edible oil companies. Adani Wilmar stock opened 5 percent lower at Rs 664.95 against the previous close of Rs 699.90 on BSE.

Shares of Adani Wilmar were stuck at the lower circuit for the rest of the session.  At 3:12 pm, the large cap stock was trading 5 percent lower on BSE. The stock has fallen nearly 10 percent in the last two sessions. Market cap of the firm fell to Rs 86,222 crore.

A total of 2.41 lakh shares of the firm changed hands amounting to a turnover of Rs 16.06 crore on BSE. The stock has lost 13.03 per cent in a month but risen 4.46 per cent in a week.

Also Read: Govt exempts import tax on 20 lakh MT each of crude soyabean, sunflower oil

Adani Wilmar stock trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. Adani Wilmar stock has lost 24.29 per cent or Rs 213.35 from its record high of Rs 878.30 hit on April 28, 2022.

Shares of Adani Wilmar ended 5 percent lower at Rs 664.95 on BSE today.  On Tuesday too, the stock ended 5 percent lower at Rs 699.90.

ALSO READ: Adani Wilmar stock falls after six days, hits 5% lower circuit

Similarly, Ruchi Soya stock fell 5 per cent to Rs 1045.65 against the previous close of Rs 1100.45 on BSE.

The stock opened with a loss of 2.86 percent at Rs 1069 on BSE.

Shares of Ruchi Soya stand higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.

The stock has gained 22.76 percent in 2022 and lost 7.19 per cent in a year. The share has fallen 14.26 per cent in three sessions.

Total of 1.49 lakh shares of the firm changed hands amounting to a turnover of Rs 15.68 crore. Market cap of the firm fell to Rs 37,851 crore. Later, the stock ended 5 per cent lower on BSE. The share closed 5 percent lower in the previous session at Rs 1100.45.

The reduction in the duty, known as the Agriculture Infrastructure and Development Cess (AIDC), could bring down domestic prices and help consumers and domestic refiners cushion the blow from surging food costs. India has already abolished the basic import tax on crude palm oil, crude soyoil and crude sunflower oil, but continues with the 5% AIDC on these three grades of edible oils.