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Equity markets tumble on global cues, LTCG tax reintroduction

Mumbai, Feb 2 (IANS) The barometer Sensex of the BSE tumbled over 500 points on Friday following negative global cues and disappointment post Budget announcements on long-term capital gains (LTCG) tax reintroduction. The Nifty50, too, slipped over 160 points.

In his Budget speech on Thursday, Finance Minister Arun Jaitley proposed to tax LTCG on equities exceeding Rs 1 lakh at 10 per cent. The LTCG tax reintroduction had infused huge volatility in the market on Thursday also.

Heavy selling pressure in banking, capital goods, auto, consumer durables, and oil and gas stocks added to the downward trajectory of the indices.

Around 1.40 p.m., the barometer 30-scrip Sensitive Index (Sensex) of the BSE traded at 35,339.30 points -- down 567.36 points or 1.58 per cent from its previous close.

The Sensex has touched a low of 35,295.70 points -- shedding over 600 points -- during the intra-day trade.

On the the National Stock Exchange, the wider Nifty50 declined by 167.15 points or 1.52 per cent to trade at 10,849.75 points.

On Thursday, the Nifty50 fell by 10.80 points or 0.10 per cent to 11,016.90 points, while the Sensex closed at 35,906.66 points -- down 58.36 points or 0.16 per cent.