Indices close lower as Jaitley announces LTCG tax
Nifty50 and Sensex ended the day slighly lower than the previous days close even as the latter failed to ratain the 36,000 level
Key Indian equity indices plunged after Finance Minister Arun Jaitley today announced in his Budget speech 10% long-term capital gains (LTCG) tax for gains exceeding Rs 1 lakh from stock market.
Nifty50 and Sensex ended the day slighly lower than the previous days close even as the latter failed to ratain the 36,000 level.
The BSE market breadth was bearish with 1,457 declines and 1,317 advances. Among the Nifty indices, Pharma and PSU Banks were the worst performers.
On Wednesday, the benchmark indices closed in the negative territory on the back of negative global cues and heavy selling pressure in healthcare, consumer durables and capital goods stocks.
The Nifty50 fell by 21.95 points or 0.20 per cent to close at 11,027.70 points, while the Sensex closed lower by 68.71 points or 0.19 per cent at 35,965.02 points.
Shares of broking companies today fell by up to 5%after the government introduced long-term capital gains tax of 10% on stock market gains exceeding Rs 1 lakh, PTI reported.
Religare Enterprises dipped 4.95%, Aditya Birla Money 2.18 per cent, Motilal Oswal Financial Services 1.63% and DB International Stock Brokers 1% on the BSE.
Presenting the Budget proposals for 2018-19, the finance minister said returns from the stock market are quite attractive and it was time to bring them under the ambit of capital gains tax.
The BSE benchmark Sensex crashed over 300 points in afternoon trade today after Jaitley announced the long-term capital gains tax in his Budget speech.