Mumbai, Feb. 1 -- The key equity indices traded with sharp losses in afternoon trade as investor sentiment weakened after the government announced an increase in the securities transaction tax (STT) on futures contracts to 0.05% while STT on options rises from 0.10% to 0.15% of the premium. Nifty skid below 25,050 mark after hitting day's high of 25,440 in mid-morning trade.

PSU Bank, oil & gas and realty shares declined while IT and consumer durables shares advanced

At 13:25 IST, the barometer index, the S&P BSE Sensex declined 542.62 points or 0.66% to 81,727.16. The Nifty 50 index tumbled 274.20 points or 0.79% to 25,087.30.

The broader market underperformed the frontline indices. The BSE 150 Mid-Cap index declined 1.03% and the BSE...