Sensex sheds 500 points

MUMBAI: The stock market extended its losses with the Sensex dipping close to 500 points within minutes of Finance Minister P Chidambaram announcing a hike in short-term capital gains tax to 15 per cent, while leaving corporate tax and surcharge rates unchanged.

The 30-share Sensex was trading down by 464.86 points at the day's low of 17,359.62.

While Finance Minister P Chidambaram raised tax slabs for personal income tax assessees, he left corporate tax rates unchanged and raised short-term capital gains tax to 15 per cent from 10 per cent.