Indian stock markets have registered a sharp decline on Friday. Without passing the Finance Bill in the Lok Sabha on Thursday, the passage of any amendment pushed investors to show the impact on the market too. The passage of any amendment without the Finance Bill means that the extra tax imposed on the rich was not withdrawn as requested by the Association of Foreign Portfolio.
On Friday, the Sensex lost 560 points or 1.44 percent and closed at 38,337 points. During the day, it went down to 38,271.35 points and higher level of 39,058.73 points. On the National Stock Exchange's Nifty, there was a decline of 178 points ie 1.53 percent and closed at 11,419. It remained at a lower level of 11,399.30 points and a high of 11,640.35 points during the business.
The sharpest decline was seen in the share of auto companies. Shares of Mahindra & Mahindra, Bajaj Finance, Tata Motors, Hero MotoCorp, IndusInd Bank, Yes Bank, Bajaj Auto, Kotak Bank, State Bank of India and ICICI Bank declined by 4.36 percent. At the same time, before the quarter results were released, Reliance's stock closed down by 1.01 percent. The price of NTPC, Powergrid, TCS and ONGC shares included in the Sensex itself is increased. This increase was up 2.32 percent. During the debate on the Finance Bill in Parliament, Nirmala Sitharaman was responding on Thursday. They rejected the debate over the effect of foreign portfolio investor (FPI) to increase surcharge by offering proposed on the rich. Sitharaman said that if the FPI registers as a company, then the increase in tax on the wealthy will not be affected by the surcharge.
Many FPIs investing in the stock market are registered as trusts, they should register as a company to avoid high tax surcharges. Foreign Portfolio Investors withdrew Rs 1,404.86 crore on Thursday. While domestic institutional investors bought shares of Rs 329.05 crore.