MUMBAI: Investors booked profits in oil and gas majors— RIL, Cairn India and ONGC— after Finance Minister Pranab Mukherjee today announced cess on crude petroleum oil products.
Cairn India was the worst hit and plunged 6.02% to close the day at Rs 345.55, while ONGC dipped 4.66% to close at Rs 273.30 on the BSE.
Oil India was down 4.38%, while RIL lost 3.27% after Mukherjee proposed the hike in cess in the Budget 2012-13.
“Hike in cess on crude petroleum oil created a negative impact on oil explorers with ONGC, Cairn, RIL falling in the range of 3-6%,” Milan Bavishi Research Head Inventure Growth and Securities said.
Oil cess on domestic crude was today raised to Rs 4,500 per tonne from Rs 2,500 per tonne.
Hit by losses in these stocks, the BSE Banking index closed for the day 3.32% lower at 8,240.78 and was the worst performer among the 13 BSE sectoral indices.
On the Budget, Pradeep Gokhale Head-Research Tata Asset Management said, “A pragmatic budget, given the political and economic circumstances prevailing.”