Nifty 50 index ended 0.18 per cent or 28.20 points lower at 15,752.05 on the first trading day of the second quarter and the BSE Sensex slipped 0.21 per cent or 111.01 points to 52,907.93.
- Nifty Energy index fell 3.9 per cent
- Reliance’s stock plunged 7.2 per cent, marking its worst day since November 2020
- ONGC plummeted 13.5 per cent, its biggest slide since March 23, 2020
Gains in consumer goods and financial stocks helped India’s blue-chip share indexes recover sharply on Friday, after government export duties on oil products triggered a plunge in energy majors Reliance Industries and ONGC.
The NSE Nifty 50 index ended 0.18 per cent or 28.20 points lower at 15,752.05 on the first trading day of the second quarter and the BSE Sensex slipped 0.21 per cent or 111.01 points to 52,907.93, after falling up to 1.7 per cent each earlier in the session.
The indexes, which on Thursday capped their worst quarter since the early days of the Covid-19 pandemic, managed to close the week marginally higher after last-hour buying in FMCG and financial stocks.
India introduced export duties for petrol, diesel and jet fuel to help maintain domestic supplies, and imposed a windfall tax on oil producers that have benefited from higher global crude oil prices, sending energy stocks into a spiral.
The measures “highlight the tightening energy market outlook,” Morgan Stanley wrote in a note, adding the announcement was incrementally negative for sector valuations.
Morgan Stanley said ONGC would be most negatively impacted, while Reliance could manage the changes better.
Reliance, India’s most valuable company, shed around $16 billion in market value as its stock plunged 7.2 per cent, marking its worst day since November 2020.
The Nifty Energy index fell 3.9 per cent.
State-owned oil producer ONGC plummeted 13.5 per cent – its biggest slide since the pandemic-wrecked March 23, 2020. Oil India slid 15 per cent, while Mangalore Refinery and Petrochemical slumped 10 per cent.
Meanwhile, the Nifty FMCG index jumped 2.8 per cent on its best day since mid-March, helped in part by a slump in palm oil prices.
Non bank lenders Bajaj Finance BJFN.NS and Bajaj Finserv climbed 4 per cent and 3.6 per cent, respectively, leading the recovery in the Nifty.
The rupee hit a record closing low of 79.05 against the dollar, versus Thursday’s close of 78.97.