Domestic markets descended into negative territory after opening flat on Wednesday, tracking volatile global cues. The markets were also dragged lower by a fall in oil stocks in the wake of increased taxes on petrol and diesel.

The key factor that dented sentiments on D-Street on Wednesday was the Centre’s decision to hike fuel taxes, which will provide additional monetary support to the government, but will increase OMCs’ cash outflow.

Shares of OMCs such as HPCL, BPCL and IOC fell sharply on the stock market in early trade. Shares of ITC were also down almost 6 per cent. All Nifty sectoral indexes apart from Nifty Metal and Nifty Realty were in red, with Nifty FMCG leading the fizzle.

Investors, meanwhile, are also awaiting a relief package that the government was expected to announce. Many industry bodies have said that a common relief package is necessary for all affected sectors immediately or it could lead to permanent damage.

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