Sensex down 900 points following budget

Sensex and Nifty extended their fall today as weak global cues added to the poor investor sentiment on Friday’s Budget proposals. The Sensex and Nifty lost over 1 per cent during the early trade on Monday following the tabling of the Union Budget on Friday.

Domestic equity benchmark BSE Sensex plummeted over 900 points in late afternoon trade dragged by losses in index heavyweights HDFC Bank, L&T and Bajaj Finance, amid heavy selloff in global equities.

After plunging 907 points, the 30-share index was trading 755.87 points, or 1.91 per cent, lower at 38,757.52 at 1545 hours. Similarly, the broader Nifty sank 246.75 points, or 2.09 per cent, to 11,564.40.

Top losers in the Sensex pack included Bajaj Finance, ONGC, Hero MotoCorp, Maruti, L&T, NTPC, SBI, Tata Motors and Axis Bank, cracking up to 9 per cent. While, Yes Bank, HCL Tech, TCS, TechM, M&M and Infosys were among the gainers, rising up to 5 per cent.

In the previous session, the 30-share gauge finished 394.67 points, or 0.99 per cent, lower at 39,513.39, and the Nifty sank 135.60 points or 1.14 per cent, to 11,811.15, after the Union Budget proposal to raise public shareholding threshold fanned fears of oversupply of new papers in an already overbought market.

According to traders, higher tax incidence proposed in the Budget for foreign portfolio investors and high net worth individuals is also weighing on investor sentiment here.

On a net basis, foreign institutional investors sold equities worth Rs 89.38 crore, while domestic institutional investors purchased shares to the tune of Rs 275.63 crore, provisional data available with stock exchanges showed Friday. Besides overhang from the Union Budget, domestic equities extended losses tracking a major selloff in global equities, traders said.

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