Market down on higher short-term capital gains tax

Benchmark indices tripped after Finance Minister P Chidambaram announced a hike in short-term capital gain tax to 15 per cent from the present 10 per cent. Bombay Stock Exchange’s Sensex plunged 422 points or 2.3 per cent to 17,402 and National Stock Exchange’s Nifty was at 5,155 down 129 points or 2.21 per cent. However, the finance minister kept the dividend distribution tax unchanged at 15 per cent, securities transaction tax was left unchanged and Banking Transaction Tax will be withdrawn from April 2009.