Mumbai, Feb. 1 -- The key equity indices traded with sharp losses in mid-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. The move directly hit the most active part of the market, triggering aggressive unwinding in brokerages, exchanges and high beta stocks linked to F&O volumes. Nifty dropped below 25,100 level.

Realty shares declined after rallying the past four trading sessions.

At 14:25 IST, the barometer index, the S&P BSE Sensex declined 814.83 points or 0.93% to 81,501.15. The Nifty 50 index tumbled 261.15 points or 1.03% to 25,059.50.

The broader market und...