Sensex declines 124 pts on higher tax proposals

Wiping out early gains, the BSE benchmark Sensex was trading 124 points lower at midsession on Thursday with investor community hair-splitting various budget proposals like higher taxes on corporates and individuls and reduction in Securities Transaction Tax

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After a higher start

at 19,322.28, the Sensex fell sharply by 124.38 poins to 19,028.03 at 13:00 hrs as stocks of bank, oil and gas and metal sector declined.

The broad-based Natonal Stock Exchange index Nifty fell by 40.50 points to 5,756.40, after climbing to 5,849.90 at the outset.

Brokers said the budgetary proposals lacked any worthwhile market moving announcement and remained under pressure as some corporates and individual taxes were raised.

They said the tumbling market received little support on lowering of Securities Transaction Tax (STT) on equity futures to 0.01% from 0.17%.

The market even ignored the firming global markets after an overnight rise in the US stocks, they added.