Shares of state-run oil marketing companies were bleeding in red on Bombay Stock Exchange after the government cut excise duty on petrol and diesel.
In a bid to provide respite to the common man from rising fuel prices, the government on Thursday announced a Rs 2.50 per litre cut in petrol and diesel prices as it reduced excise duty by Rs 1.50 a litre.
Weighed down by the development, the BSE Oil&Gas index tumbled 9.71 per cent to trade at 12557.48. Among the individual stocks, Hindustan Petroleum Corporation Ltd. was down 21 per cent, followed by Bharat Petroleum Corporation Ltd. (Rs. 274.75,-18.31%), Indian Oil Corporation Ltd. (Rs. 121.90,-13.45%), Oil And Natural Gas Corporation Ltd. (Rs. 154.75,-11.47%), Oil India Ltd. (Rs. 185.90,-11.07%), among others.
Meanwhile, the broader benchmark BSE Sensex was trading at 34,821.59, down 347.57 points, or 0.99 per cent, from the previous close on the BSE at 10:40 hours.