The BSE Index index shed 293 points, or ~2% at 15,449 on Thursday. It had opened at 15,663. GAIL
, Petronet, Castrol
, and BPCL
were the major contributors to this fall.
On the flip side, HPCL
and Oil India were the gainers in the oil and gas index.
Shares of GAIL India slipped 10% after the media report stated that the Petroleum and Natural Gas Regulatory Board of India's tariff hike for the company's Jagdishpur-Haldia-Bokaro-Dhamra pipeline on Tuesday.
PNGRB set the provisional tariff for the first phase of the pipeline at Rs63.46 per mBtu on gross calorific value, 58% lower than that demanded by GAIL India.
Further, the lower-than-expected tariff hike spurred brokerage firm CLSA Asia-Pacific Markets to downgrade its rating on the stock to "underperform" and cut its target price by 13% to Rs365.
Meanwhile, oil prices hovered around their lowest levels since January as markets remain under pressure from rising US supply and stalling demand amid an economic slowdown.
On Wednesday, Brent and WTI have hit their lowest levels since January, at $59.45 and $50.60/bbl respectively, amid a surge in US crude inventories and record production, and as a global economic slowdown was starting to hit energy demand.
The Sensex was down 107 points at 39,976 levels, and the Nifty50 index slipped 53 points at 11,968 levels. The market breadth was negative on the NSE with 1,042 shares advancing, 561 shares declining, and 483 remaining unchanged.