MUMBAI (Reuters) - Indian stock markets fell on Monday in a volatile session, with energy companies such as Oil and Natural Gas Corp slumping after the government unveiled a higher-than-expected tax in its budget for 2016/17, offsetting hopes for rate cuts that had lifted bonds and the rupee.
ONGC fell 10 percent after the government said it would change a tax called the Oil Industries Development Cess on locally produced crude oil from 4,500 rupees per tonne to a higher-than-expected 20 percent of the value of the commodity.
The broader Nifty fell 0.61 percent to end at 6,987.05 after falling as much as 2.9 percent and rising as much as 0.9 percent
The benchmark BSE Sensex declined 0.66 percent to close at 23,002.
(Reporting by Aastha Agnihotri; Editing by Biju Dwarakanath)
