MUMBAI: Market indices took a steep hit in Friday morning trade, in response to this year’s Union Budget, tabled earlier on Thursday.
While the Sensex fell by 530.85 points to 35,376.40, NSE’s Nifty saw a 158.85 point decline to 10,858.05.
While HCL Technologies, Bajaj Auto, and ITC gained early, stocks of Axis Bank, Yes Bank, SBI, Adani Ports, ICICI Bank, Kotak Mahindra Bank, and Tata Steel incurred early losses.
Meanwhile, the rupee dropped by 6 paise to 64.08 against the dollar in morning, largely due to concerns over widening fiscal deficit.
The government on Thursday in the Union Budget 2018-19 introduced a long-term capital gains tax of 10 per cent on stock market gains exceeding Rs 1 lakh, which spurred volatility in the foreign exchange market.
Further, Finance Minister Arun Jaitley in his Budget speech said corporate tax for 2018-19 has been cut to 25 percent for companies with revenue up to Rs 250 crore, while personal income tax remains untouched.