Sensex plummets over 900 points, Nifty nosedives 373 points as Budget fails to live up to market expectations
New Delhi | Jagran Business Desk: The BSE Sensex plummeted over 900 points to slip below 40,000-mark at close on Saturday led by an intense broad-based selloff after the Union Budget for 2020-21 failed to live up to market expectations.
The BSE Sensex slipped 987 points at 39,735. It hit an intra-day low of 39,631.24 and a high of 40,905.78.
Meanwhile, Nifty plunged 373 points at 11,661 points.
ITC was the major loser in the Sensex pack slipping over 6.97 per cent, followed by L&T, HDFC, SBI, ONGC, ICICI Bank and IndusInd Bank.
On the flip side, TCS, HUL, Nestle India, Tech Mahindra and Infosys rallied up to 4.13 per cent.
Unveiling the Union Budget 2020-21, Finance Minister Nirmala Sitharaman proposed to remove dividend distribution tax on companies, effectively shifting the tax burden to recipients at the applicable rate.
She aslo announced the widening of the fiscal deficit at 3.8 per cent in the FY20, compared to earlier target of 3.3 per cent.
In her second full time budget, Sitharaman said certain government securities will be open for froreign investors, adding that the Centre plans to increase investment limit for FPIs in corporate bonds from 9 per cent to 15 per cent.
As per Krishna Kumar Kerwa, MD- Emkay Global Fianancial Services, investors were disappointed with no relief on LTCG and lack of big bang sectoral stimulus.
"The removal of Dividend Distribution Tax seen as a continuation of earlier step of reducing corporate tax is well appreciated and sends the right signals to local and global investors," he added.
(with PTI inputs)
Posted By: James Kuanal