Sensex, Nifty tumble as Budget proposes to raise Securities Transaction Tax to 0.05 pc on commodity
Mumbai (PTI): Stock market benchmark indices Sensex and Nifty tumbled on Sunday afternoon trade after the Budget proposed to raise Securities Transaction Tax to 0.05 per cent on commodity futures from 0.02 per cent.
The government will tax buyback proceeds for all types of shareholders as capital gains, Finance Minister Nirmala Sitharaman said on Sunday.
After fluctuating in early trade, the 30-share BSE Sensex later bounced back but pared all gains amid the Budget presentation.
It later plunged 2,370.36 points, or 2.88 per cent, to slip below the 80,000-mark to 79,899.42 during the afternoon trade. The 50-share NSE Nifty tanked 748.9 points, or 2.95 per cent, to 24,571.75.
From the 30 Sensex firms, Bharat Electronics tanked 6.50 per cent. State Bank of India, HCL Tech, Tata Steel, Asian Paints, and Eternal were also among the laggards.
Sun Pharma, Sun Pharma, Kotak Mahindra Bank, and Tata Consultancy Services were the gainers.
"The increase in Securities Transaction Tax (STT), especially in futures and options, is likely to act as a marginal negative for foreign portfolio investor (FPI) flows in the near term, particularly for high-frequency and derivative-focused global funds," Aakash Shah, Technical Research Analyst at Choice Equity Broking, said.
Foreign institutional investors bought equities worth Rs 2,251.37 crore on Friday, according to exchange data.
Asian markets are closed on Sunday due to holidays. US markets ended lower on Friday.
On Friday, the Sensex declined 296.59 points, or 0.36 per cent, to settle at 82,269.78. The Nifty dropped 98.25 points, or 0.39 per cent, to end at 25,320.65.
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Distillery producing premium craft rum shuts down as LPG runs dry
Bengaluru (PTI): A craft rum distillery near Mysuru has temporarily shut its operations after failing to procure gas for its boilers, amid the ongoing LPG supply disruption triggered by the widening West Asia conflict, the unit's founder said.
Aruna Urs, founder of the distillery that produces Huli Spirits -- touted as India's first premium craft rum made from jaggery --announced the development on Thursday through his social media handle on X.
"Huli is closed from Monday as we are unable to procure LPG for our boiler. We had a public and a private supplier, and both managers categorically stated that the order from above is to only refill domestic canisters..." he added.
The premium, single-origin jaggery-based rum is produced at a micro-distillery located in Nanjangud taluk of Mysuru district.
Urs, however, did not mention how long the shutdown would continue.
Boilers are an essential component in the distillation process, and LPG is a critical component for the production.
Several small manufacturing units have been affected by the ongoing disruption caused by a shortage of commercial LPG cylinders in the market.
As a result, many restaurants, hotels and catering services have either shut their kitchens or are operating under strain using the limited stocks available.
