Overview
- Reliance shares, which dropped more than 4% Monday, have fallen about 6% over two sessions and left the company valued near Rs 17.65 lakh crore.
- The decline followed the government's return of export taxes on diesel at Rs 21.50 per litre and on jet fuel at Rs 29.50 per litre, stoking concern about thinner refining profits.
- Higher crude prices tied to Middle East tensions added pressure by lifting input costs for the company’s refining business.
- Reports indicate output from Reliance’s Jamnagar special economic zone refinery may be exempt under earlier court rulings, and analysts said that could blunt the tax hit.
- Jefferies estimated fuel margins could settle near $20 a barrel under the duty regime, while technical analysts flagged support around Rs 1,260 with risk toward Rs 1,200 if that level fails.