TIL Desk/Business/Mumbai/ The benchmark indices plunged up to 1.72 per cent in late morning trade after Fitch Ratings said weak public finances constrain India’s sovereign ratings. The Sensex tumbled by 591.69 points or 1.64 per cent to quote at 35,314.97 as banking, financials capital goods and auto stocks nosedived.
Also, the NSE Nifty dipped below the 10,900-mark to trade at 10,826.50, down by 190.40 points, or 1.72 per cent. Widespread selling dragged all the sectoral indices led by realty, consumer durables, power, capital goods and banking sectors, falling up to 5.17 per cent.
Stocks had opened down as the government’s proposal to impose a 10 per cent long term capital gains tax on equity gains of over Rs 1 lakh hit triggered profit booking in frontline stocks.
Finance Minister Arun Jaitley 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 dampened the market sentiment.
The sentiment took another jolt after Fitch Ratings today said high debt burden of the government constrains India’s rating upgrade. Banking stocks led by Yes Bank, SBI, ICICI Bank, Kotak Bank, HDFC LTD and IndusInd Bank suffered losses up to 3.80 per cent.
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