Published: Mon, February 05, 2018
Sci-tech | By Eric Barnett

Sensex cracks over 839 points the day after Budget presentation

Sensex cracks over 839 points the day after Budget presentation

The existing rate of short term capital gains is 15%. Negative leads from Asian markets also spoiled sentiment. RBI will hold its monetary policy meeting on Wednesday, 7 February 2018.

Finance Minister Arun Jaitley 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 dampened the market sentiment. The gauge had gained 232.81 points to close at a new peak of 36,283.25 after scaling an all-time intra-day high of 36,443.98 in yesterday's trade.

The Nifty tanked 256.30 points or 2.33 per cent to end the session at 10,760.60.

The broader market depicted weakness. The mid-cap and small-cap shares saw their worst selling in over a year as the S&P BSE MidCap Index slumped 4 percent and the S&P BSE SmallCap Index tumbled 4.6 percent.

On BSE, 2,368 shares fell and 279 shares rose.

China accuses United States of 'Cold War mentality' over nuclear policy
Chinese defense ministry spokesperson Ren Guoqiang criticized the US Nuclear Posture Review in a statement released on Sunday. The German response to the USA nuclear review comes on the heels of condemnations from Russia , China, North Korea and Iran.

On the positive side, IT stocks such as Infosys, TCS, HCL Technologies and Tech Mahindra ended with modest gains on a sliding rupee. Dr Reddy's Laboratories (up 0.16%), Cipla (up 0.40%), Sun Pharmaceutical Industries (up 0.61%), Aurobindo Pharma (up 0.73%) and Glenmark Pharmaceuticals (up 1.10%), edged higher.

India's financial markets went into a tailspin on Friday, with benchmark equity indices clocking the sharpest single-day fall in almost 15 months following the return of the long term capital gains (LTCG) tax on equities in this Budget.

Govt has chose to impose 10 per cent tax on LTCG for equity and equity-oriented investments for amount exceeding capital gains of Rs 1 lakh.

Meanwhile, it was a black Friday for the Indian stock markets, which witnessed a bloodbath as panic-stricken traders and investors dumped shares across the board rattled by the budget proposal to re-introduce long-term capital gains tax on equities amid profit-taking due to lofty valuations. The target for 2018-19 has been fixed at 3.3 per cent as against the Fiscal Responsibility and Budget Management Act target of 3 per cent.

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