Benchmark indices opened sharply lower on Friday morning after the government move raised fear of subsidy burden on PSU oil companies.
The 30-share BSE Sensex was down 228.38 points or 0.65 percent at 34,940.78 and the 50-share NSE Nifty fell 113.90 points or 1.07 percent to 10,485.40.
GAIL cracked 10 percent and ONGC plunged 12 percent. MRPL was down 10 percent. HPCL, BPCL and IOC crashed another 20-25 percent on government move.
Tech Mahindra, Hindalco, Reliance Industries and TCS were down 2-4 percent, but Infosys was up a percent.
Titan Company, IDBI Bank and IL&FS Investment Managers were gainers.
Benchmark indices were mixed in pre-opening trade with the Sensex rising 148.20 points to 35,317.36 while the Nifty fell 83.50 points to 10,515.80.
The Indian rupee opened lower at 73.65 per dollar on Friday against previous close of 73.58.
Yesterday rupee touched record low of 73.81 per dollar before ending down 24 paise.