Mar 4, 2008

BSE Realty index worst hit in market fall

BSE Realty index worst hit in market fall

BSE Sensex was down 280.84 points or 1.68% to 16,397.04, extending early fall on reports that ICICI Bank has lost over Rs 1000 crore in overseas operations due to subprime crisis.

The market declined in early trade extending last two days' fall caused by Budget blues. Traders, domestic funds and some foreign institutional investors (FIIs) are likely to be hit by a hike in short term capital gains tax on sale of shares to 15% from 10%, which amounts to a massive 50% hike in the tax rate, in Union Budget 2008-09 announced on Friday, 29 February 2008.

The change in tax treatment of the Securities Transaction Tax (STT) in the budget, meanwhile, may impact arbitrage volumes on the bourses. STT will now be treated like any other deductible expenditure against business income for the assesse. This is against the current practicse whereby an assesse gets 100% rebate for STT paid against the tax liability for the year. A fall in arbitrage will result in decline in liquidity on the bourses.

All sectoral indices on BSE suffered losses today. The BSE Auto (down 0.10% at 4,843.34), the BSE FMCG index (down 0.76% at 2,209.67) and the BSE Health Care index (down 1.35% at 3,868.33), outperformed the Sensex.

The BSE PSU index (down 2.44% to 7,804.92), the BSE Bankex (down 4.56% at 9,004.24), the BSE Capital Goods index (down 2.82% at 14,754.11), the BSE IT (down 2.10% to 3,614.80), the BSE TecK index (down 2.38% to 3,048.95), the BSE Consumer Durables index (down 2.60% to 4,354.24), the BSE Metal index (down 1.78% to 15,516.93), the BSE Oil & Gas index (down 2.31% to 10,181.01) and the BSE Power (down 2.60% to 3,348.23), underperformed the Sensex.

Key losers from real estate sector were DLF (down 4.16% to Rs 685), Unitech (down 4.37% to Rs 324.65), and Akruti City (down 12.47% to Rs 957.75).

ICICI Bank (down 4.80% to Rs 975.30), State Bank of India (down 2.20% to Rs 1881.15), and HDFC Bank (down 2.92% to Rs 1349.90), were the key losers from banking sector

 

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