Bloodbath continues on stock market; Sensex falls 300 points

Benchmark Nifty fell 0.87% to 10,666.55, while Sensex closed 309.59 points

Finance Secretary Hasmukh Adhia, however, said the sell-off in equity markets is due to a weak global sentiment and not due to the introduction of LTCG tax. Image source: Reuters

Benchmark indices today fell for the fifth straight session on expectation that the Union Budget could push up inflation, prompting the central bank to raise interest rates soon.

Benchmark Nifty fell 0.87% to 10,666.55, while Sensex closed 309.59 points today. Most of the Nifty indices were in the negative territory.

Finance Secretary Hasmukh Adhia, however, said the sell-off in equity markets is due to a weak global sentiment and not because of long-term capital gains tax announced in the budget.

Adhia said the 10% tax on long-term capital gains (LTCG) is a “subsidised rate” as such gains on sale of unlisted scrips and immovable property are taxed at 20%.

Asian shares fell the most in over a year today, while Wall Street slipped from record highs and sparking speculation that central banks globally might be forced to tighten policy more aggressively.

Finance Minister Arun Jaitley on Monday attributed the downslide in the bourses to the fall global markets. Jaitley`s remarks came after the Indian equity markets on Friday witnessed the steepest fall since November 2016, after LTCG tax on equities was re-introduced in the Union Budget.

The Sensex had shed over 800 points and the Nifty50 over 200 points in a single day on Friday.