Sensex crashes 839 points to end at 35,066; Nifty slips below 10,800 on long-term capital gains tax woes

Market mood suffered another setback after Fitch Ratings today said high debt burden of the government constrains India's rating upgrade

The post-Budget sell-off dragged the Sensex down by a whopping 800 points while the broader Nifty cracked the 10,800-mark on all-round selling 

The long-term capital gains tax on equities and 10 per cent tax on distributed income from equity-oriented mutual funds hit sentiments. 

Market mood suffered another setback after Fitch ratings today said high debt burden of the government constrains India's rating upgrade. 

The flagship Sensex crashed 839.91 points to end at 35,066.75 with all the sectoral indices trading in the negative zone. 

The 50-share NSE Nifty slumped 256.30 points to close at 10,760.60. 

Investors will have to pay 10 per cent tax on distributed income from equity-oriented mutual funds, as per the Budget proposals announced yesterday. 

While unveiling the Budget proposals for 2018-19, Finance Minister Arun Jaitley introduced 10 per cent tax on long-term capital gains from stock markets, exceeding Rs 1 lakh.

The Finance Minister also projected a fiscal deficit of 3.5 per cent of GDP for current fiscal against the earlier target of 3.2 per cent which also accelerated pace of selling by participants.