A day after the finance minister announced to impose a 10 per cent long-term capital gains tax on equity gains in excess of Rs 1 lakh, the benchmark Sensex at the Bombay Stock Exchange fell sharply by around 880 points or 2.5 per cent at 3:15 PM as sentiments were beaten by the imposition of the tax. Experts say that fall in markets also triggered margin selling by traders as they looked to limit their losses. “Margin selling got triggered after the Sensex fell by over 500 points and it took the markets down further. The fall has been triggered both by imposition of LTCG and by overall weakness in the global markets,” said the CEO of a broking firm.
The Nifty 50 was below 10,900-mark to trade at 10,826.50, down by 190.40 points, or 1.72 per cent. Moreover, eight out of every 10 stocks on BSE fell with the disappointment from the Budget due to the reintroduction of long-term capital gains tax and forecast of fiscal slippages continuing into Friday.

A day after the finance minister announced to impose a 10 per cent long-term capital gains tax on equity gains in excess of Rs 1 lakh, the benchmark Sensex at the Bombay Stock Exchange fell sharply by around 880 points or 2.5 per cent at 3:15 PM as sentiments were beaten by the imposition of the tax. Experts say that fall in markets also triggered margin selling by traders as they looked to limit their losses. “Margin selling got triggered after the Sensex fell by over 500 points and it took the markets down further. The fall has been triggered both by imposition of LTCG and by overall weakness in the global markets,” said the CEO of a broking firm.
The Nifty 50 was below 10,900-mark to trade at 10,826.50, down by 190.40 points, or 1.72 per cent. Moreover, eight out of every 10 stocks on BSE fell with the disappointment from the Budget due to the reintroduction of long-term capital gains tax and forecast of fiscal slippages continuing into Friday.