Markets slip on tax hike on short-term capital gains

February 29th, 2008 - 3:30 pm ICT by admin  

A file-photo of P. Chidambaram

Mumbai, Feb 29 (IANS) The Indian stock market reacted negatively to a hike declared on taxes on short-term capital gains to 15 percent from 10 percent. India’s benchmark index tumbled over 350 points after the announcement by Finance Minister P. Chidambaram during his 2008-09 budget presentation Friday. There was heavy selling in realty, oil and gas, banking and consumer durables scrips.

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) opened at 17,779.54 points and notched a high of 17,337.46.

It lost 358.42 points or 2.01 percent at 1.09 p.m., trading at 17,466.06 points.

The consumer goods index took a heavy beating with a fall of 445.22, followed by metals at 423.43 points.

Oil and gas suffered badly by a fall of 331.68 points, Bankex came down by 167.43 points and realty by 156.95 points.

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