Market crash not due to LTCG tax, says Finance Minister
New Delhi: Even as the stock market continued its downward slide on Monday, Finance Minister Arun Jaitley said it was not in reaction to the Union Budget or the reimposition of Long Term Capital Gains (LTCG) tax, but due to global factors.
Jaitley's remarks came after the Indian equity markets on Friday witnessed the steepest fall since November 2016, after LTCG tax on equities was re-introduced in the Union Budget for 2018-19, leading the Sensex to shed over 800 points and the Nifty50 over 200 points in a single day.
"It is not due to the Budget or the LTCG. Dow Jones has also fallen by over two per cent," Jaitley told reporters on the sidelines of an event here.
Jaitley was referring to the sharp fall in the US stocks on Friday when Dow Jones Industrial Average lost 665.75 points, or 2.54 per cent, to close at 25,520.96.
The barometer Sensex of the BSE, however, continued its downward slide on Monday and fell by almost 550 points to 34,520 before recovering to some extent. It was trading at 34,737 at 1115 hours.