Reliance Industries shares plunge over 8%

Share price of Reliance Industries Ltd (RIL) fell over 8 percent on Thursday (July 1) after Indian government imposed taxes on export of petrol, diesel and jet fuel (ATF) shipped overseas by Indian firms.

Indian government levied a tax of Rs6 per litre on exports of petrol and aviation turbine fuel and Rs13 per litre on exports of diesel. The step is aimed at meeting the demand of the domestic market.

Speaking on the reason for dip in Reliance share price, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “GoI levying taxes on windfall gains made by domestic oil refineries has not gone down well on the Dalal Street. Reliance shares nosediving on Friday has to be seen from this perspective. As Reliance is one of the major diesel and other oil exporter company in India, it is expected to continue receiving the beating. So, Reliance shares may continue to remain under pressure next week as well because the market may further discount on this GoI move.”

According to stock market experts, export oriented oil manufacturing companies are expected to make staggering income from cheaper crude oil being available by the Russian government.

In that scenario, Reliance Industries Limited (RIL), which is one of the biggest diesel exporters in India is also expected to incur windfall gains. So, the GoI move aims to ask for its share in the additional income Reliance and other oil making companies are expected to collect after Russia-Ukraine war.

They said that Reliance Industries shares are expected to feel the pressure as market is expected to further discount on Reliance shares when the market opens next week.