BENGALURU, July 1 Reuters Gains in consumer goods and financial stocks helped India39;s bluechip share indexes recover sharply on Friday, after government export duties on oil products triggered a plunge in energy majors Reliance Industries and ONGC.
The NSE Nifty 50 index ended 0.18 lower at 15,752.05 on the first trading day of the second quarter and the SP BSE Sensex slipped 0.21 to 52,907.93, after falling up to 1.7 each earlier in the session.
The indexes, which on Thursday capped their worst quarter since the early days of the COVID19 pandemic, managed to close the week marginally higher after lasthour buying in FMCG and financial stocks.
India introduced export duties for gasoil, gasoline and jet fuel to help maintain domestic supplies, and imposed a windfall tax on oil producers that have benefited from higher global crude oil prices, sending energy stocks into a spiral.
The measures highlight the tightening energy market outlook, Morgan Stanley wrote in a note, adding the announcement was incrementally negative for sector valuations.
Morgan Stanley said ONGC would be most negatively impacted, while Reliance could manage the changes better.
Reliance, India39;s most valuable company, shed around 16 billion in market value as its stock plunged 7.2, marking its worst day since November 2020.
The Nifty Energy index fell 3.9.
Stateowned oil producer ONGC plummeted 13.5 its biggest slide since pandemicwrecked March 23, 2020. Oil India slid 15, while Mangalore…