Benchmark Sensex crashed over 300 points in afternoon trade today after Finance Minister Arun Jaitley announced 10 percent tax on some long-term capital gains in his Budget speech.
The NSE Nifty also sank below the 11,000-mark during the Budget presentation. Sentiment also took a hit after the fiscal deficit target for 2017-18 was raised to 3.5 percent of GDP as against 3.2 percent earlier.
The target for 2018-19 has been fixed at 3.3 percent as against the Fiscal Responsibility and Budget Management Act target of 3 percent.
In highly volatile trading, the Sensex crashed to 35,590.17, a steep fall of 374.85 points, or 1.04 percent. The 50-share NSE Nifty dropped 117.20 points, or 1.06 percent, to 10,910.50.
All sectoral indices were weighed down by widespread selling, with consumer durables, metal, healthcare, realty and power falling by up to 3.20 percent.
Laggards included Dr Reddy's, Sun Pharma, ICICI Bank,Infosys, Tata Steel, Bharti Airtel, SBI, ONGC, Maruti Suzuki and Reliance Industries, declining by up to 2.58 percent.