Sensex falls 111 pts, Nifty at 15,750; oil & gas stocks top losers

The Indian market closed lower on Friday led by selling in oil and gas stocks after the government imposed taxes on exports of petroleum products and windfall gains from refining of crude oil.

Sensex fell 111 points at 52,908 and Nifty closed 28 points lower at 15,752 in volatile trade. ITC, Bajaj twins and Asian Paints were the top Sensex gainers, rising up to 3.99 per cent. Reliance Industries, PowerGrid, NTPC, and Bharti Airtel were the top Sensex losers, falling up to 7.14 per cent.

Shares of Reliance Industries Ltd (RIL) fell over 8 per cent intraday after the government announced taxes on windfall gains made by crude oil producers. The government imposed an additional cess of Rs 23,250 per barrel on domestic crude production.

RIL stock ended 7.14 per cent or Rs 185 lower at Rs 2,408 on BSE.

Oil and gas stocks were the top sectoral losers as the impact of new taxes weakened sentiments in other stocks. BSE oil and gas index was the top sectoral loser, falling 578 pts to 17,443.

Vinod Nair, Head of Research, Geojit Financial Services said, "Unfavorable cues from the domestic market led to a weak start due to weakness in the rupee and selling in oil refineries as the government imposed an additional export duty on petrol and diesel. Adding to the weakness, India's factory output growth slowed down during June, as high inflation continued to dampen demand. However, the FMCG sector witnessed strong buying supported by declining commodity prices on the belief that the prices have peaked out."

Share Market update: Sensex falls 111 pts, Nifty ends at 15,750; RIL top loser

Market breadth was negative with 1,576 stocks ending higher against 1,654 stocks falling on BSE. 162 shares were unchanged.

Oil and gas stocks were the top sectoral losers with BSE oil and gas index falling 578 pts to 17,443. IT stocks were the top gainers with their BSE index rising 204 pts. BSE midcap and smallcap indices gained 145 points and 21 points, respectively. Market cap of BSE-listed firms fell to Rs 243.87 lakh crore.

Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 1,138.05 crore on Thursday, as per exchange data.

Global markets

Elsewhere in Asia, markets in Tokyo, Seoul and Shanghai ended lower. European bourses were trading in the green in mid-session deals. The US markets ended lower on Thursday.

Meanwhile, international oil benchmark Brent crude jumped 1.90 per cent to $111.1 per barrel.