Mumbai: The market partly shed the previous session’s gains on the government's overnight decision to raise windfall tax on export of diesel, crude oil and aviation turbine fuel (ATF) as well as negative global cues from Western markets—the US and Europe—and Eastern markets, in China and Hong Kong.
The Sensex fell 770.48 points or 1.29 per cent to close at 58766 while the NIfty-50 closed 216.5 points or 1.22 per cent down at 17542.80.
The fortnightly review of windfall tax triggered a selloff in oil & gas companies. Index heavyweight Reliance Industries fell 2.99 per cent and the BSE Oil & Gas Index fell 1.77 per cent, pulling down the benchmark indices.
"The benchmarks have witnessed significant volatility in this truncated week, so far, rising 2.5 per cent on Tuesday either side of over 1 per cent decline on Monday and Thursday,” said Mohit Nigam, head-PMS, Hem Securities.
Foreign portfolio investors were net sellers of equities worth Rs 2,290.31 crore while domestic institutions were net buyers by Rs 951.13 crore.
