Published: Mon, February 05, 2018
Science | By Eileen Rhodes

Bloodbath on stock market: Investors become poorer by Rs 4.6 lakh crore

Bloodbath on stock market: Investors become poorer by Rs 4.6 lakh crore

On the market-cap front, the BSE 250 Small Cap index was the worst performer with a 4.98% intra-day loss.

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. "By removing exemption of long term capital gains on transfer of shares, this avenue may not be a preferable option any more". Negative leads from Asian markets also spoiled sentiment.

Bond yields hardened as well during the early trading hours of Friday expecting a hawkish stance from the Reserve Bank of India (RBI).They cooled off only after reports that the central bank will conduct open market operations and buybacks.

In his last full Budget before next year's general election, Jaitley stepped up government spending in rural areas while the fiscal deficit target for FY19 was pegged at 3.3% of GDP against an earlier target of 3%. Also, the NSE Nifty dipped below the 10,900-mark to trade at 10,826.50, down by 190.40 points, or 1.72 per cent.

The broader market depicted weakness.

More news: Prediction: Leicester City vs Swansea City

The benchmark indices witnessed significant volatility during the Budget week ended February 2.

On BSE, 2,368 shares fell and 279 shares rose. Tech Mahindra, HUL, Infosys, TCS and HCL were the only five gainers in the 51-share Nifty. 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.

A day after Budget 2018, the markets shuddered and benchmark indices fell sharply, a outcome of the new long-term capital gains (LTCG) tax and other factors, analysts said.

The tax liability will accrue only when the income from sale of equity/ equity mutual funds is over Rs one lakh. However, all gains up to 31 January 2018 will be grandfathered.

As expected, the reintroduction of Long Term Capital Gains Tax (LTCG tax) in FM Arun Jaitley's Union Budget led to carnage on the Dalal Street.

Like this: