BSE Sensex falls to 3-mth low in worst Budget day show since 2009
The sentiment turned bearish on hike in some taxes despite reduction in Securities Transaction Tax on mutual fund and equity futures transactions.
Auto stocks, including Maruti, saw losses as government announced hiking excise duty on luxury cars and their parts.
RIL, HDFC Bank, L&T, Tata Steel and Bhel also ended down. ITC, however, recouped early losses to close flat after being hit by additional duty on cigarettes. The fall in the Sensex today was the biggest in the past four years on the Budget day. Previously, it had tumbled by 869.65 points or 5.83 per cent on July 6, 2009.
Shares from power, banking, capital goods, metal, PSU, realty and refinery sectors suffered the most while from consumer durable and IT segments like TCS registered gains.
Sensex-based counters like ICICI Bank, SBI, HDFC Bank, RIL, HDFC, L&T, HUL, Tata Steel, M&M, Maruti Suzuki, Tata Power, BHEL, Jindal Steel, NTPC, Hindalco and Sterlite Ind closed down between 1.99-5.80 per cent range. Total 363 shares settled in their lower circuit band.
D R Dogra, MD and CEO, CARE Ratings & Research said: "The stock market movement during the course of the speech was indicative of a rather indifferent reaction to Budget bordering on disappointment. The reduction of the STT is positive though the commodity market will not be too happy with the introduction of CTT on non-farm products."
However, D K Aggarwal, CMD, SMC Investments and Advisors said, Budget announced by the Finance Minister seems to be a balanced budget considering constraints
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