Sensex crashed 983 points during the week

The Nifty of National Stock Exchange (NSE) too lost 256 points or 2.79 per cent at 10,760.60.

With this, the Sensex tumbled down 983.69 points and the Nifty of National Stock Exchange (NSE) fell by 309 points during the week ended Friday.

Long-term capital gains tax on equities and and ten per cent tax on distributed income from equity-oriented mutual funds dampened the domestic sentiment.

It got another setback after Fitch Ratings today said high debt burden of the government constrains India's rating upgrade.

Domestic stocks dropped sharply during the week as investors were disappointed after the government proposed long-term capital gains (LTCG) tax on equity gains in Union Budget presented on February 1.

The S&P BSE Mid-Cap index dropped 1266.49 points or 7.1 pc to settle at 16,574.70. The S&P BSE Small-Cap index dropped 1494.65 points or 7.73 pc at 17,847.53. Both these indices underperformed the Sensex.

Key benchmark indices logged modest gains on Monday after the Economic Survey tabled by Finance Minister Arun Jaitley in Parliament on 29 January 2018 predicted real  GDP growth to rise to 7-7.5 pc in 2018-19 as the Sensex, gained 232.81 points to 36,283.25 and the Nifty 50 index rose 60.75 points at 11,130.40.

From Tuesday it negative journey started and on Friday it was collapsed.

Key benchmark indices, led by slide in index heavyweights Reliance Industries (RIL), HDFC and ICICI Bank, registered modest losses on Tuesday as BSE Sensex, lost 249.52 points to 36,033.73. and the Nifty 50 index lost 80.75 points to 11,049.65. Negative global cues weighed on the sentiment.

Domestic stocks drifted lower to hit over one-week closing lows on Wednesday as investors remained cautious ahead of the Union Budget 2018-19. The BSE Sensex, fell 68.71 points at 35,965.02 and the Nifty fell 21.95 points at 11,027.70.

On Thursday, after the finance minister Arun Jaitley announced long-term capital gains (LTCG) tax for investing in equities the sensex slipped 58.36 points at 35,906.66 and the Nifty too dropped 10.80 points at 11,016.90.

On Friday the last day of the week, the sesnex crashed by 839.91 points to 35,066.75 and the Nifty too slumped by 256.30 points to 10,760.60 as introduction of long term capital gains tax (LTCG) in the Union Budget 2018-19 unveiled on February 1 disappointed investors.

Investors were also miffed as the fiscal deficit target for FY2018 was extended to 3.5 pc of GDP in the Budget, from 3.2 pc pegged earlier. Negative cues from global markets also spoiled sentiment.