Mumbai: As the government swept aside any scope of revoking or tweaking the tax on "super-rich" adversely affecting a chunk of FPIs, a major driver of Indian stock market, Sensex on Friday slumped over 560 points.
Lacklustre earnings, slowing consumption and already pricey valuations further kept a lid on buying sentiment, traders said.
"Fear of further outflow of foreign funds is the main trigger today as the government has made it clear that the tax on the super-rich is here to stay," Siddhaart Khemka, Head of Retail Reseach, Motilal Oswal said.
The Sensex closed 560.45 points lower at 38,337.01 while the Nifty declined by 177.65 points to 11,419.25.
A total of 43 companies out of 50 on the Nifty50 stocks ended lower, with heavy selling seen in auto, pharma and banking stocks.
M&M, Bajaj Finance, Tata Motors, Hero MotoCorp, IndusInd Bank, Yes Bank, Bajaj Auto, Kotak Bank, SBI and ICICI Bank were among the top losers Friday, dropping up to 4.36%.
