Budget 2013 stock markets,NSE Nifty tanks 104 pts

NSE Nifty crashed by 104 points to settle below the 5,700 mark.

Written by PTI | Mumbai | Published:February 28, 2013 9:17 pm

An already nervous market gave a big thumbs down to the Budget today as the benchmark CNX NSE Nifty crashed by 104 points to settle below the 5,700 mark on the National Stock Exchange (NSE),spooked by proposals like increase in corporate surcharge,more taxes on super-rich and hike in dividend distribution tax.

Investor fraternity,eagerly waiting for the Budget to gauge the Government’s mind on further economic reforms,felt let down by certain proposals,analysts maintained.

The 50-share index fluctuated between a high of 5,849.90 and a low of 5,671.90 before concluding at 5,693.05,a loss of 103.85 points,or 1.79 per cent,from last close.

Profit-booking on the last day of the expiry of February derivative contracts also played a key role in denting the market,traders said.

Frontline financials and energy stocks were mauled ruthlessly and they were followed by infra,metal,auto and pharma shares. The heavy sell-off in mid and small-cap counters continued unabated for the third day.

Though there was no big bang announcements from the Finance Minister,what the market was expecting was steps to rejuvenate a faltering economic growth,analysts said.

He,however,managed to announce a bigger-than-expected outlay for the coming fiscal while keeping his promises for fiscal consolidation,they said.

The Budget proposes to bring down the fiscal deficit to 4.8 per cent of GDP in 2013-14 from 5.2 per cent in the current financial year.

Earlier,the Nifty rallied to hit the 5,800 level on optimism and buoyant global sentiment. Soon after the Budget presentation,it succumbed to across the board sell-off.

Reliance Infra,SBIN,Ranbaxy,Bank of Baroda,IDFC,Axis Bank,ACC,Power Grid,PNB and Tata Steel were among the top Nifty losers. The notable gainers included TCS,Bharti Airtel,Bajaj Auto,HCL Tech,Kotak Bank,Coal India,Tata Motors,HeroMoto Corp,Infosys and ITC.

Turnover in the cash segment recorded its highest ever single-day trading volume of Rs 21,996.20 crore from Rs 11,915.07 crore yesterday. A total of 14,149.934 lakh shares changed hands in 88,37,653 trades. The total market capitalisation stood at Rs 63,85,291 crore.

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