Sensex falls down to 58000, Nifty support around 17150; Service sector growth wanes in July; Zomato shares in red; ATF tax removed
The government notification also stated that the ATF tax had been removed. Zomato’s stock price fell 2.8 percent on Wednesday after a drop of 10%
Dalal Street benchmark indices opened flat but quickly rose. The S&P BSE Sensex increased by more than 100 points, or 0.23 percent, to sit above 58,200, while the NSE Nifty 50 index increased to above 17,300.
Bank Nifty was down, hovering around 38,000, while the India VIX rose and edged closer to 19 levels. The top Sensex gainer was Bharti Airtel, which was up 0.92 percent, followed by HUL and Tata Steel.
The top laggard was Kotak Mahindra Bank, which was down 0.90 percent, followed by Mahindra & Mahindra and IndusInd Bank.
The government of India announced late Tuesday evening, in its second review, a reduction in the windfall tax on diesel exports to just Rs 5 per litre. Fuel exporters like Reliance Industries may benefit from the move.
While the tax on diesel exports has been reduced from Rs 11 per litre to Rs 5 per litre, the new additional excise duty (cess) on petroleum crude has been raised marginally from Rs 17,000 to Rs 17,750 per tonne, as trade parity prices followed by domestic oil producers such as ONGC and OIL have risen marginally since mid-July in line with global crude prices.
The government notification also stated that the ATF tax had been removed. Zomato’s stock price fell 2.8 percent on Wednesday after a drop of 10%.