Sensex tanks 1,000 points, Nifty down 300
Stocks slumped in all sectors except IT and TECK stocks
New Delhi: The negativity in the stock markets continued following the budget presentation as the BSE Sensex plunged over 1,000 points with major slumps across sectors.
The Nifty50 on the National Stock Exchange also shed over 300 points during the intra-day trade.
Stocks slumped in all sectors except IT and TECK stocks. The BSE banking index slumped 3.2 per cent, the financial index was down 3.8 per cent and the capital goods stocks were down 4.79 per cent.
The BSE Sensex settled at 39,735.53, lower by 987.96 points or 2.43 per cent from the previous close of 40,723.49 points.
It had opened on 40,753.18 and touched a high of 40,905.78 and a low of 39,631.24 points intraday.
The Nifty50 closed 318.30 points or 2.66 per cent lower at 11,643.80 points.
Expectations
There were expectations that the Budget would fix the long term capital gains (LTCG) tax at 24 months or two years uniformly for all asset classes, which would have benefited the investors. However, no such announcement was made.
Finance Minister Nirmala Sitharaman, however, announced the removal of dividend distribution tax (DDT), which is likely to be favourable for the investors.
Budget FY20-21 also proposed a new income tax regime with lower tax rates. The new regime would be optional, but would require taxpayers to forego tax exemptions.