Shares of Reliance Industries Ltd and Oil & Natural Gas Corporation Ltd (ONGC) were trading in the green zone in Monday's early trade following revision in windfall taxes.
The Centre, on Saturday, marginally increased windfall tax on locally produced crude oil from ₹4350 per tonne to ₹4400 per tonne.
However, special additional excise duty on jet fuel exports has been scrapped from ₹1.5 per litre earlier and that on the export of diesel has been reduced from ₹2.5 per litre to ₹0.5 per litre. The excise duty on the export of petrol continues to be nil.
"Special additional excise duty on fuel exports will be effective from March 4. This will increase the refining gains of exports focused companies, mainly Reliance Industries," said brokerage house ICICI Direct Research in its report.
Shares of Reliance Industries gained over 1% in Monday's early trade and hit a high of ₹2,418.35, and low of ₹2,395 during the intra-day session. Additional, the company, US-based First Solar and Shirdi Sai bid for end-to-end polysilicon wafer cells modules (PWCM) manufacturing for a total of 15.4 GW under the second tranche of the production linked incentive (PLI) scheme for solar equipment manufacturing. This news added to the positive sentiment.
Shares of ONGC on Monday gained close to 1%. The stock has gained 29.54% from the 52-week low of ₹119.9.
According to a MintGenie poll, 32 analysts on an average recommend ‘strong buy’ for Reliance Industries, and 24 analysts on an average recommend ‘strong buy’ for ONGC stock.