Mumbai, Feb 5: The Indian markets crashed in opening trade, with the 30-share BSE Sensex falling below 35,000 on Long Term Capital Gains Tax as well as global cues. The 30-share BSE Sensex was down 527.75 points or 1.50 per cent at 34,539 while 50-share NSE Nifty fell 166.40 points or 1.55 per cent to 10,594.20 on opening bell. (Bloodbath on Sensex on Friday) However, both Sensex and Nifty recovered slightly in the first couple of hours of trade even as they continued to trade in the red. At 10:19 am, Sensex was 346 points down at 34,720 while Nifty was 110 points down at 10,649. Also Read - Stock Market Crash: Sensex Nosedives 1,115 Pts, Nifty Tanks Below 10,850-mark in Closing Session
On Closing Bell, key equity indices recovered a little from the opening losses but ended in the red. The BSE Sensex was down by 309.59 points or 0.88 per cent at 34,757.16 while the NSE Nifty fell 94.10 points or 0.87 per cent to close at 10,666.50. Also Read - Sensex, Nifty Tick Higher in Opening Trade
Experts say that indices will continue to trade lower for the next few days with the investor sentiment remaining negative after Finance Minister Arun Jaitley announced LTCG Tax in Union Budget 2018. Jaitley proposed to tax long-term capital gains on equities exceeding Rs 1 lakh at 10 per cent. Also Read - Sensex Loses Over 400 Points, Nifty Below 11,000 Mark
On Friday, BSE Sensex ended 839.91 points or 2.34 per cent down at 35,066.75, the NSE Nifty was down by 256.30 points or 2.33 per cent at 10760.60.
Meanwhile, the global market also showed weakness on Friday. The Dow Jones tumbled 665.75 points or 2.5 per cent to 25,520.96, the Nasdaq fell 144.92 points or 2 per cent to 7,240.95 and the S&P 500 was down 59.85 points or 2.1 per cent to 2,762.13.
On Friday, the market mood suffered another setback today after Fitch Ratings said the high debt burden of the government constrains India’s rating upgrade.