Indian shares tumble on budget woes

Indian shares tumbled on Friday as the long-term capital gains tax on equities investments dampened the investors’ sentiment.

The weak sentiment came a day after the government unveiled its budget for the year starting in April, widening the fiscal deficit target to 3.3 per cent of GDP from the previous 3.0 per cent.

The Nifty was down 1.2 per cent at10,874.30 as of 0538 GMT after slumping as much as 1.73 per cent, the biggest percentage loss since Dec 18, 2017, reports Reuters.

The Sensex was 1.34 per cent lower at 35,426.35, after falling as much as 1.65 per cent.

Meanwhile, the benchmark 10-year bond yield rose 7 bps to 7.65 per cent after rising 17 bps on Thursday, while the rupee weakened to 64.1250 from its 64.02 close on Thursday.

All major NSE indexes witnessed selling pressure. The Nifty Realty index dropped as much as 8.3 per cent, its biggest percentage loss since November, 2016.

However, ITC Ltd bucked the trend, rising as much as 3.7 per cent, as the budget left the tax on cigarettes unchanged.