Bloodbath on stock market: Investors become poorer by Rs 4.6 lakh crore

Reintroduction of the long-term capital gains (LTCG) tax of 10 percent on equities, along with weak global cues, led to a huge sell-off in market.

Reuters File Photo

New Delhi: Investors wealth was eroded by Rs 4.6 lakh crore amid massive selling in the markets on Friday with the key equity indices falling the steepest  in two-and-a-half years.

Reintroduction of the long-term capital gains (LTCG) tax of 10 percent on equities, along with weak global cues, led to a huge sell-off.

Stamping its biggest single-day fall in two-and-a-half years - the flagship BSE-Sensex crashed 840 points to close at 35,066, while the Nifty took a knock by 256 points to end below the 10,800-mark.

Following the sharp decline in stocks, the market capitalisation of BSE-listed companies tumbled Rs 4,58,581.38 crore to Rs 148,54,452 crore.

This is the biggest single day fall of the index since August 24, 2015, when it had fallen by 1,624.51 points.

Among the 30-share basket, 27 stocks ended with losses led by Bajaj Auto and Bharti Airtel. All the sectoral indices on BSE ended in the red led by realty and infrastructure.

On the BSE, 2,527 stocks declined, while 310 advanced and 124 remained unchanged.

On the currency front, the Indian rupee weakened by 4 paise to close at 64.06 against the US dollar from its previous close at 64.02.

Meanwhile, ratings agency Fitch on Friday said high debt burden of the government constrains India's rating upgrade after Finance Minister Arun Jaitley projected a fiscal deficit of 3.5 percent of GDP against the earlier target of 3.2 percent.

With Agency Inputs