LTCG tax impact : A day after budget, Sensex slips 500 points, Nifty below 11,000

NEW DELHI: On Friday, the markets in early trading, gave a cold shoulder to Budget 2018 as the benchmark indices tanked below key psychological markets.

Sensex lost 580 points to slip to intra-day low of 35,314.97. Nifty's intra-day low came at 10,826.50, almost 300 points below previous closing mark.

Analysts say the slump is a result of the introduction of LTCG tax has caused stir in the market which had been marching on a bull run till a couple of days ahead of budget. "Near term volatilities could be possible as market readjusts itself to budget announcements and LTCG as well", said Lakshmi Iyer ,CIO - Debt & Head - Products, Kotak Asset Management.

When trading started, the BSE index lost 199 points and Nifty lost 79 points to start trading 10,938.20 as they slipped below respective psychological marks of 36,000 and 11,000.

The bank stocks were dragging the most with both Nifty Private Bank and Nifty Public Bank sub-indices losing more than 2 per cent each. Metal, financial service and auto stocks were also tanking. IT was the only sectoral sub-index to hold forte.

At 10.58 am, Sensex was down 497 points while Nifty was in the red by 154 points.

Bombay Stock Exchange - BSE

National Stock Exchange of India Ltd (NSE)