Budget 2018: Stock markets recover from 463 points intra-day loss

Although the imposition of LTCG tax, along with STT, is seen as a negative, the market took the news in the stride due the manner of implementation

The Indian stock markets staged a dramatic comeback after slipping more than one per cent following the Budget announcements to impose a tax on long-term capital gains (LTCG) on equity investments.

The benchmark Sensex fell as much as 463 points to 35,502 in a knee-jerk reaction to the announcement. It recouped most of the losses to end at 35,907, down 58.4 points, or 0.16 per cent. On the NSE, the Nifty50 index closed at 11,017, down 10.8 points, or 0.1 per cent. The Sensex gyrated between gains and losses 18 times. The volatility gauge India VIX index dipped 11.4 per