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Reliance Industries shares plunge over 8%, here's why

Reliance Industries shares plunge over 8%, here's why

RIL share plunged 8.66 per cent to Rs 2,369.45 against the previous close of Rs 2,594.05 on BSE.

RIL share has gained 17.22 per cent in one year and risen 3.83 per cent since the beginning of this year. RIL share has gained 17.22 per cent in one year and risen 3.83 per cent since the beginning of this year.

Shares of Reliance Industries Ltd (RIL) fell over 8 per cent today after the government imposed taxes on export of petrol, diesel and jet fuel (ATF) shipped overseas by Indian firms. The government levied a tax of Rs 6 per litre on exports of petrol and aviation turbine fuel and Rs 13 per litre on exports of diesel.The step is aimed at meeting the demand of the domestic market.

The taxes on exports come after oil refiners, particularly from the private sector, attracted huge gains from exporting fuel to markets such as Europe and the US amid a surge in international oil prices.

Ravi Singh, vice-president and head of Research, Share India said, "RIL has fallen amid weakness in the benchmark indices and introduction of taxes on export of petrol, diesel and jet fuel (ATF) shipped overseas by Indian firms to meet the demand of domestic market. RIL stock may again show weakness to touch the levels of Rs 2,380 - 2,350 in the coming trading sessions."

It also announced taxes on windfall gains made by crude oil producers. The government imposed an additional cess of Rs 23,230 per barrel on domestic crude production. The move is aimed to take away windfall gains accruing to producers from high international oil prices.

Ravi Singhal, Vice Chairman, GCL Securities said, "As we can see after the government imposes taxes on refineries for windfall profits This will have a significant impact on the refinery business."

The taxes on windfall gains by crude producers sent the shares of ONGC lower by 12 per cent. The ONGC stock fell 12.28 per cent intraday to Rs 132.85 against the previous close of Rs 151.45 on BSE.

AR Ramachandran, Co-founder & Trainer, Tips2Trades said, "While the recent levy of taxes on petroleum products will surely impact Reliance & other OEM companies, today's sharp fall has factored the margin hit to be taken by Reliance in the coming quarter. Technically, Rs 2,340- Rs 2,360 now remains a strong support zone to start accumulating for longer term targets of Rs 2,900-3,050 in the coming months. Rs 2470 will act as a strong resistance next week."

Meanwhile, RIL stock has fallen after three days of consecutive gain.

Stocks in news: Reliance Industries, Indian Oil, HUL, Bharti Airtel and more

RIL shares plunged 8.66 per cent intraday to Rs 2,369.45 against the previous close of Rs 2,594.05 on BSE. Reliance Industries is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

RIL share has gained 17.22 per cent in one year and risen 3.83 per cent since the beginning of this year. Total 5.83 lakh shares of the firm changed hands amounting to a turnover of Rs 142.98 crore on BSE.

Market cap of the conglomerate fell to Rs 16.60 lakh crore. The share hit a 52-week high of Rs 2,855 on April 29, 2022 and a 52-week low of Rs 2, 016 on July 28, 2021.

Share Market Live: Sensex falls 675 pts, Nifty below 15,600; RIL tanks 8%