Benchmark index BSE Sensex closed nearly 840 points down at 35,067 on Friday, a day after Finance Minister Arun Jaitley unveiled the 2018 Union Budget. Stock markets took a hit after the government proposed 10% Long-Term Capital Gains (LTCG) tax on equity investments with gains of over ₹1 lakh. The NSE Nifty closed 256 points lower at 10,760.
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.