Sensex drops 248 points on profit booking in early trade

Mumbai: In the early trade benchmark stock index Sensex feel by 248 points based on profit booking by investors amid weak Asian cues.Brokers said Prime Minister Narendra Modi favouring increasing tax contribution from various market participants in a "fair, efficient and transparent way", too triggered selling in early trade.

The 30-share barometer declined by 248.45 points, or 0.95 per cent, to 25,792.25 with all the Sensex constituents trading in the red. The index had gained 61.10 points to settle at 26,040.70 points in the last session.

All sectoral indices led by metal, infrastructure, banking and PSU fell up to 1.03 per cent.

The NSE Nifty was also trading lower by 79.20 points, or 0.99 per cent, at 7,906.55.

The Prime Minister last week favoured increasing the tax contribution from various market participants in a "fair, efficient and transparent way" and promised more "sound and prudent policies and reform measures".

Asking the regulators and taxmen to think about the contribution of market participants to the exchequer, Modi said had said that the low contribution of taxes may be due to the structure of tax laws. "Low or zero tax rate is given to certain types of financial income," he had said in Mumbai.

With PTI Inputs