Steel, oil & gas stocks see market cap erode by Rs 2.6 lakh cr on new taxes

Mumbai: A whopping ₹2.6 lakh crore market capitalisation has been wiped out from steel and oil & gas stocks after the government imposed new taxes on these two sectors. The new taxes will impact corporate earnings and may also raise a fair degree of concern among investors about the overall investment climate in the country, analysts warned.

“The recent imposition of new taxes or increase in tax rates in a few sectors may help the government garner additional revenues and fight inflation, but it will also hurt corporate profits and market capitalisation and India’s overall investment climate,” said Sanjeev Prasad, co-head at Kotak Institutional Equities.