Indian markets crash, Sensex loses over 839 points

RSTV Bureau

sensex-down-400x265The post-Budget sell-off dragged the Sensex down by a whopping 839 points on Friday. The index closed at 35066.75. Nifty too saw a massive fall of 256.30 points, finally closing at 10760.60.

The long-term capital gains tax on equities and and 10 per cent tax on distributed income from equity-oriented mutual funds hit the investor sentiments.

Market mood further suffered a setback after Fitch Ratings today said high debt burden of the government constrains India’s rating upgrade.

Banking stocks led by Yes Bank, SBI, ICICI Bank, Kotak Bank, HDFC LTD and IndusInd Bank suffered big losses.

Other losers that pulled down the key indices from their crucial levels were ONGC, Tata Steel, Maruti Suzuki, M&M, Hero Motocop, Power Grid, Coal India, Asian Paints, Reliance Ind, Coal India.

Investors will have to pay 10 per cent tax on distributed income from equity-oriented mutual funds, as per the Budget proposals announced on Thursday.

While unveiling the Budget proposals for 2018-19, Finance Minister Arun Jaitley introduced 10 per cent tax on long-term capital gains from stock markets, exceeding Rs 1 lakh. He also projected a fiscal deficit of 3.5 per cent of GDP for current fiscal against the earlier target of 3.2 per cent which also accelerated pace of selling by participants.

Global markets were also trading in the negative after most of the US stock indices fell due to political crisis and growth concerns.

(With inputs from agencies)