The benchmark BSE Sensex depreciated by 839.91 points to 35,066.75 at market close, while the broader NSE Nifty 50 plunged to 10,760.60 by 256.30 points post-budget 2018.
The long-term capital gains tax on equities and 10 % tax on distributed income from equity-oriented mutual funds hit sentiment on the street.
All sectoral indices on the Bombay Stock Exchange were trading in the negative zone.
As per the Budget proposals announced yesterday, Investors will have to pay 10 % tax on distributed income from equity-oriented mutual funds.
While unveiling the Budget proposals for 2018-19, Finance Minister Arun Jaitley introduced 10 % tax on long-term capital gains from stock markets, exceeding Rs 1 lakh.
The Finance Minister also projected a fiscal deficit of 3.5 % of GDP for current fiscal against the earlier target of 3.2 % which also accelerated the pace of selling by participants.