Benchmark indices tumbled early trade on Friday as investors were dissatisfied with the Union Budget 2018-19. The BSE Sensex fell over 300 points, while the NSE Nifty 50 traded below 11,000 in the opening. Investors are liable to pay 10 percent tax on profits more Rs 1.00 lakh made from share sale or equity mutual fund units held for over one year.
The BSE Sensex was trading at 35,329, down 577 points, while the Nifty50 index was trading at 10,833, down 183 points in the later deals.
Financial sector and Banking stocks traded lower. Canara Bank, Kotak Mahindra Bank, IndusInd Bank, ICICI Bank, Axis Bank, State Bank of India and HDFC Bank were down at a tune of 3 to 1 percent, while IT stocks were trading higher with TCS Ltd, Infosys, HCL Technologies, Wipro adding 1.2 to 0.5 percent.
Cigarette Company’s stocks rose after the govt kept the cess on cigarettes unchanged. ITC Ltd gained 2 percent and VST Industries Ltd 3 % in the morning hours.
Across sectors, Nifty PSU Banks Index was down 2 percent while, Nifty IT and Nifty FMCG were trading higher by 0.5% and 0.7%, respectively.
Shares of Ashok Leyland Limited gained 2% after the company’s Q3 net profit was above expectation, while Bajaj Auto stock rose 1% after its sales rose 3,53,147 units in January.