INDIAN MARKET CRASHES ON BUDGET WOES

Rs4.6 LAKH CRORES WEALTH WASHED OUT

Benchmark Sensex plummeted 840 points today -- its biggest single-day fall in two-and-a-half years -- while the NSE Nifty ended below the 10,800-mark as the post-Budget sell-off continued for the second straight day. The Budget 2018-19 presented yesterday imposed long-term capital gains tax of 10 per cent on equities. Investors will also have to pay 10 per cent tax on distributed income from equity-oriented mutual funds. Market mood suffered another setback after Fitch Ratings today said high debt burden of the government constrains India's rating upgrade. The flagship Sensex crashed 839.91 points, or 2.34 per cent to end the day at 35,066.75 as jittery investors sold off shares across all sectors. The Budget for 2018-19 imposed long-term capital gains tax of 10 per cent on equities. The major part of today's correction can be attributed to the budget announcement of imposition of long term capital gains tax on equity, introduction of tax on distributed income by equity oriented mutual funds and fiscal slippage.

- The broader NSE Nifty cracked below the 10,800-mark by tanking 256.30 points, or 2.33 per cent, to 10,760.60 at close.

- Domestic institutional investors (DIIs) sold shares worth Rs 358.50 crore, while foreign portfolio investors net bought shares worth Rs 1,099.780 crore yesterday, as per provisional data.

Investors become poorer by Rs 4.6 lakh crores

Investors wealth was today eroded by Rs 4.6 lakh crore amid massive selling in the stock market where the BSE benchmark index plummeted 840 points. Following the sharp decline in stocks, the market capitalisation of BSE-listed companies tumbled Rs 4,58,581.38 crore to Rs 148,54,452 crore.

- Among the 30-share basket, 27 stocks ended with losses led by Bajaj Auto and Bharti Airtel. All the sectoral indices on BSE ended in the red led by realty and infrastructure. On the BSE, 2,527 stocks declined, while 310 advanced and 124 remained unchanged.