The shares of Mukesh Ambani-led Reliance Industries have fallen by more than 7% in the early trading session of Friday. The share opened at ₹2574 and fell up to ₹2385 levels. This is the most it has dropped in the last twenty months.
Recently the government announced that it will be increasing taxes on the export of Gasoline, Diesel and Jet fuel. It also introduced an additional windfall tax on gains made by domestic refiners.
The centre will charge ₹6 per litre tax on exports of petrol and ₹13 per litre on the export of diesel. In addition to that, ₹23,230 per tonne will be levied as an additional tax on all the domestically produced crude oil to take away any windfall gains that accrue to the producers from high international oil prices.
However, it was also mentioned that the export-focused refineries have been exempted from this latest notification. This is because the exporters are expected to sell a minimum of 30 per cent of their products locally first.
Other oil exploration companies also took a hit by the news. The shares of Oil & Natural Gas Corporation Limited are down by more than 9 per cent so far. The stock price has dipped to ₹138.30.
Mukesh Ambani announced his succession planning recently. He resigned as the director of Reliance Jio Infocomm Ltd and named his eldest son Akash M Ambani, as the chairman of the board of directors. His daughter, Isha Ambani is set to be named director of Reliance Retail Ventures Ltd.
Apart from this, Reliance Brands has announced a strategic partnership with Pret A Manger, a global fresh food and organic coffee chain, to newly launch and build its brand in India.
Written By – Anoushka Roy
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
