Two days after Budget, Sensex nosedives 792 points; Nifty cracks below 11,600
Mumbai | Jagran News Desk: Monday turned out to be the worst day for the Indian indices as Sensex slumped to 792 points. This is for the second straight session that the Sensex dropped after Finance Minister Nirmala Sitharaman announced the budget.
At the end of the day, the Sensex was recorded at 38,720 while Nifty ended at 11,558.
Earlier in the afternoon, the Sensex fell as much as 847 points to 38,666 in the afternoon deals while the Nifty 50 index slumped 268.5 points to slide below 11,600 points.
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 an 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.
Other Asian markets opened significantly lower as hopes of steep cuts in interest rates by the US Federal Reserve faded after the world's largest economy posted better-than-expected jobs data Friday.
Shanghai Composite Index plunged 2.58 per cent, Hang Seng 1.54 per cent, Nikkei 0.98 per cent and Kospi tumbled 2.20 per cent.
On the currency front, the Indian rupee depreciated 30 paise to 68.72 against the US dollar.
Meanwhile, the global oil benchmark Brent crude futures were trading 0.56 per cent higher at 64.58 per barrel.
Posted By: Aalok Sensharma