India’s Largest Oil Company Becomes Top Nifty50 Gainer, Trumps Benchmarks

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India’s Largest Oil Company Becomes Top Nifty50 Gainer, Trumps Benchmarks
Credit: © Reuters.

By Malvika Gurung -- Shares of the state-owned oil manufacturing companies like ONGC (NS: ONGC ), Oil India (NS: OILI ) and Bharat Petroleum (NS: BPCL ) jumped almost 6% on Monday, as windfall profit taxes and export duties on diesel and ATF were revised over the weekend by the Centre at its sixth fortnightly review.

The Government made revisions to windfall taxes on gains produced by domestic refineries and oil producers, along with export levies on diesel and jet fuel, starting Oct 2, in line with easing crude oil prices in international markets.

The windfall profit cess on domestically produced crude oil has been cut from Rs 10,500/tonne to Rs 8,000/tonne, while a Rs 5/litre export levy on jet fuel has been slashed by the Government. The export duty on diesel has been halved from Rs 10/L to Rs 5.

Read Also: Revision - Windfall Tax Lowered, Export Duty on Diesel Halved, Slashed on ATF

As a result, shares of India’s largest OMC, ONGC jumped almost 6% on Monday and closed the session 4.42% higher, while other state-owned oil stocks climbed too, including Hindustan Petroleum (NS: HPCL ), Chennai Petroleum (NS: CHPC ), Indian Oil (NS: IOC ) and Mangalore (NS: MRPL ) Refinery, among others, as the Government's move would mean higher revenue for these companies.

ONGC was the best performer on the benchmark index Nifty50 despite the index tanking 1.21% and Sensex falling 1.11% on Monday.

Further, crude oil prices surged almost 4% on Monday, with Brent crude Futures trading 3.7% higher at 88.28/barrel and WTI Futures surging almost 4% at 82.6/barrel, following reports that the OPEC+ will consider supply cuts at its upcoming meeting on Wednesday, as prices plummeted 11.2% in September and logged their worst month in almost a year.

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