Reliance Industries stock gained 4.26 per cent to Rs 2,545 against the previous close of Rs 2,441.20 on BSE.
Shares of Reliance Industries Ltd (RIL) gained over 4 per cent in early trade today after the government cut a windfall tax on diesel and aviation fuel shipments by Rs 2 a litre. The government also cut the tax on domestically produced crude to Rs 17,000 a tonne, effective July 20.
Reliance Industries is a major exporter of fuel and is also engaged in the domestic production of crude.
Mukesh Ambani-led Reliance Jio gained a huge 31 lakh mobile subscribers in May, which also led to strong buying sentiment around the stock today.
Shares of Reliance Industries gained 4.26 per cent to Rs 2,545 against the previous close of Rs 2,441.20 on BSE. The stock was the top gainer on Sensex. On Nifty, another oil producer ONGC was the top gainer in early trade. ONGC shares gained 6.80 per cent to Rs 136.60 against the previous close of Rs 127.90.
RIL stock opened 3.84 per cent higher at Rs 2,535 on BSE today. Reliance Industries shares are trading higher than the 5-day, 20-day and 200 day moving averages but lower than 50-day and 100-day moving averages.
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RIL share has gained 19.32 per cent in one year and risen 5.49 per cent since the beginning of this year.
Total 1.59 lakh shares of the firm changed hands amounting to a turnover of Rs 39.88 crore on BSE. Market cap of the conglomerate rose to Rs 16.93 lakh crore. The share hit a 52-week high of Rs 2,855 on April 29, 2022 and a 52-week low of Rs 2, 016 on July 28, 2021.
Meanwhile, BSE oil and gas index climbed up to 468 points to 18,703 in early trade. Gains on the index were led by ONGC and RIL shares.
On July 1 this year, the government imposed taxes on export of petrol, diesel and jet fuel (ATF) shipped overseas by Indian firms. It levied a tax of Rs 6 per litre on exports of petrol and aviation turbine fuel and Rs 13 per litre on exports of diesel. The move was aimed at meeting the demand of the domestic market.
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The taxes on exports were levied after oil refiners, particularly from the private sector, attracted huge gains from exporting fuel to markets such as Europe and the US amid a surge in international oil prices.
The government also announced taxes on windfall gains made by crude oil producers. It imposed an additional cess of Rs 23,230 per barrel on domestic crude production. The move was aimed to take away windfall gains accruing to producers from high international oil prices.
However, with oil prices falling from those levels, the government has announced a partial relief today for the sectors affected by the July 1 tax hike.
Brent crude oil prices closed at $111.63 a barrel, rising $2.60, or 2.4 per cent on July 1. Currently, prices of brent crude have fallen to $106.96 a barrel.