LTCG affect: Sensex under 35000, Nifty tanks too

Amid sell-off Rs 4.95 lakh crore investor wealth vanishes

Amid sell-off Rs 4.95 lakh crore investor wealth vanishes

In the morning trade, the Sensex fell over 1,200 points and Nifty50 dipping below 10,300 points, biggest falls in six-and-half years after the US wage data on Friday pointed to quickening inflation which may lead to higher rates by the US Federal Reserve.

A total of five stocks registered a fresh 52-week high in trade today, while 153 stocks touched a new 52-week low on the NSE. BSE' Consumer Durables (down by 2.86%) lost the most. Investors are anxious that a return of inflation may force the Fed to raise rates quicker than expected.

Both these indices underperformed the Sensex.

Asian markets followed the trend with Tokyo diving more than 5 per cent, Hong Kong 4 per cent and Sydney 3 per cent, Singapore 2.3 per cent, Seoul 3 per cent, Taipei 3.7 per cent, and Shanghai 2.1 per cent.

The Nifty recorded intra day high and low at 10,423.70 and 10,276.30 respectively.

Market breadth was negative with 539 advances against 2,009 declines.

A total of over Rs12.50 trillion worth of investments got wiped off in the last six trading sessions, its longest losing streak in four months, tracking global selloff amid strong U.S. jobs data. "With 10 per cent LTCG tax, I would say Indian markets have turned 10 per cent unattractive", he said.

Tata Motors and Warburg Pincus mutually decide to call off the transaction in Tata Technologies. Tata Motors will continue to explore strategic options to sell its stake in Tata Technologies and remains positive on the outlook of the business.

Punjab National Bank fell 1.8% despite reporting an 11% increase in net profit and sequential improvement in asset quality. "It is not LTCG tax effect", Mr Adhia said at a post-Budget meet organised by industry body CII. The resolution of the MPC will be announced tomorrow, 7 February 2018.

The RBI is set to conclude its two-day policy meeting on Wednesday and is expected to leave rates on hold but could issue stronger warnings about inflation.

Also, oil prices witnessed a 1% decline.

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