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Budget bloodbath: 840-point fall today takes Sensex down 1,000 points on week; Nifty slips below 10,800

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Published: February 2, 2018 5:07:02 PM

Budget 2018: In a major offshoot of Union Budget 2018 presented by Finance Minister Arun Jaitley yesterday, the 30 share Sensex registered its biggest single-day fall in two-and-a-half years, and plummeted by more than 840 points to close the week at 35,066, 1,000 around points below its previous close last week.

budget 2018, budget date, budget 2018 india, India budget, Union budget 2018, budget 2018 expectations, budget 2018 date, budget 2018 speech, arun jaitley, arun jaitley speech, arun jaitley budget, budget allocation, rail budget, congress, bse, market, stockBudget 2018: The government?s introduction of long-term capital gains tax of 10 per cent on stock market gains exceeding Rs 1 lakh, sent the markets tumbling. (Image: Reuters)

Budget 2018: In a major offshoot of Union Budget 2018 presented by Finance Minister Arun Jaitley yesterday, the 30 share Sensex registered its biggest single-day fall in two-and-a-half years, and plummeted by more than 840 points to close the week at 35,066, 1,000 around points below its previous close last week. The broader 50-share Nifty ended below the 10,800-mark, shedding more than 200 points on week, as the post-Budget sell-off continued for the second straight day.

Watch video: Tax takeaways from Budget 2018 for the common man

Out of the 1,000 point fall in the Sensex in the last week, a whopping 982-point fall has come in the last two days, majorly as the markets reacted negatively to the imposition of LTCG tax on equities. Apart from LTCG tax the market mood suffered another setback after Fitch Ratings today said high debt burden of the government constraints India’s rating upgrade. The shares of Bajaj Auto, Bharti Airtel, Axis Bank, Maruti Suzuki India, Reliance Industries and Tata Steel fell by more than 4% each.

Also read: Budget 2018: Here’s why small investors need not worry about LTCG tax on equities

This is its biggest single session fall since August 24, 2015, when Sensex had lost 1,624.51 points. Nifty cracked below the 10,800-mark by shaving off 256.30 points, or 2.33 per cent, to 10,760.60 at close. Budget 2018 has completely slammed Indian equity markets as shares of over 2,400 companies traded in red on Friday, out of about 2,850 companies available for trading on BSE.

Earlier yesterday, Indian stock markets finished marginally lower after witnessing volatile trading activity, with stocks of pharma and PSU banks dropping the most. Yesterday, BSE Sensex lost 58.36 points or 0.16% to conclude at 35,906.66 and NSE Nifty shed 10.8 points or 0.1% to settle at 11,016.9. During the day, the S&P BSE Sensex plunged 463.28 points to hit an 8-day low of 35,501.74 while Nifty washed away 148.9 points to hit an 8-day low at 10,878.8.

Calculate: Income Tax Calculator: Find out how Budget 2018 will impact your finances

“The Equity market got a bit of hiccup in form of reintroduction of long term capital gains tax (CGT) at the rate of 10%, without any change to the Securities Transaction Tax (STT). This may impact some of the trading activity in the markets but from the long term investor’s point of view equity remains an attractive asset class. This belief becomes sanguine if you look at it in the light of recent quarterly results announced by various listed corporates,” Alok Singh, CIO, BOI AXA Mutual Fund told FE Online.

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