By Kosaku Narioka


Shares of Reliance Industries Ltd. and Oil & Natural Gas Corp. rose sharply Wednesday after the Indian government cut taxes on fuel exports.

Reliance shares were recently 2.5% higher at 2501.80 rupees ($31.33) after rising as much as 4.3% earlier, while Oil & Natural Gas shares were up 5.3% at INR134.20.

The Indian government removed a tax of INR6 per liter on gasoline exports--effective Wednesday--and lowered a tax on diesel exports, less than a month after imposing the two levies, according to official notices.

The government's decision to lower the windfall taxes in response to the decline in prices of global crude and refined products comes as a significant relief to both Reliance and Oil & Natural Gas, Citi analyst Saurabh Handa said in a research note.

Citi expects Reliance to be a sustained beneficiary as the tax cut removes a significant overhang for the stock and should preclude earnings-downgrade risks from a correction in refining margins, Mr. Handa said.

Reliance is scheduled to report its quarterly results on Friday.

India's Sensex was recently up 1.3%.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

07-20-22 0157ET