Mumbai, July 24 (UNI) A day after the government increased tax on gains from equity investments the share stock market reacted sharply on Wednesday too as the BSE Sensex fell over 280 points to settle at 80,148.88.

Proposal to hike securities transaction tax on future and options in the budget also impacted the same. The National Stock Exchange (NSE) Nifty slipped 65.55 points to close at 24,413.50.

Trading community sources said that the move to hike Long Term Capital Gain (LTCG) tax from 10 per cent to 12.5 per cent and Short Term Capital Gain (STCG) tax from 15 per cent to 20 per cent has dented the sentiments of investors’ community and it was evident from the market yesterday and also today.

Volatility was seen during the day, as the BSE Sensex fell 86 points at 80,343.38 in opening. It lost 679 points to touch day’s low at 79,750.51 before closing at 80,148.88, down 280.16 points from its previous close.

Foreign Institutional Investors (FIIs) were net sellers in the cash segment to the tune of Rs 2,975 crore while the Domestic Institutional Investors (DIIs) bought equities worth Rs 1,419 crore in the last trading session, according to data available.

Stocks that kept the market low were Bankex by 0.96 per cent, FMCG by 0.23 per cent and Financial services by 0.24 per cent.

The Mid Cap rose by 0.68 per cent and Small Cap by 1.91 per cent. In 30-scrips index, 11 advanced while 19 declined.

Tech Mahindra, NTPC, Tata Motors and Sun Pharma were among notable gainers in the market today.

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