Budget fails to uplift sentiments, Sensex tanks over 390 pts
Reversing the gains made during the early trade on Friday prior to the Budget speech, the Sensex and Nifty declined around 1 per cent as the Union Budget failed to cheer the investors.
FMCG scrips and Bank socks were the only sectors which closed with gains while heavy selling was seen in steel companies like SAIL, Tata Steel, Jindal Steel, JWS steel. Realty stocks also were among the worst hit as the Nifty Realty Index fell by 3.57 per cent.
"The big surcharge tax on the high income group and possible liquidity squeezing of secondary market liquidity due to disinvestment and increased public shareholding is causing the stock market to fall today," said Amar Ambani, President & Research Head, YES Securities.
The S&P Sensex lost 394.67 points to end at 39,513.39 before surging as much as 40,032.41. The Nifty fell by 135.60 points or 1.14 per cent to 11,811.15.
"There were high expectation from the budget given the larger mandate of the new government. This excitement met with the weak financial position, limiting the government from announcing eventful new measures," said Vinod Nair, Head of Research, Geojit Financial Services.IANS