Market review: Sensex continues to fall for fifth week as budget disappoints

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Stock market continued to fall for the fifth week by slipping 398 points to close below 19,000 level. (Reuters) Stock market continued to fall for the fifth week by slipping 398 points to close below 19,000 level. (Reuters)
SummaryStock market continued to fall for the fifth week by slipping 398 points to close below 19,000 level.

Stock market continued to fall for the fifth week by slipping 398 points to close below 19,000 level after three months due to sustained selling pressure as the government slapped more taxes on companies as well as super rich and offered little concessions for large investors in the Union Budget.

Confusion over the Tax Residency Certificate (TRC) announced by the Finance Minister on the budget day, which created fear among the foreign investors, also weighed on the market sentiments.

However, the Finance Ministry on Friday sought to assure worried investors saying that their concerns on TRC for claiming treaty benefits would be "suitably addressed" during discussion on Finance Bill in Parliament.

Rail Budget also failed to inspire investors which were already rattled by fears of worsening EU debt crisis following poll stalemate in Italy.

Profit-booking on the expiry of February series on Thursday also weighed on the market, traders said.

Realty, PSU, Refinery, Metal, Power, Capital Goods and Healthcare sectors declined sharply on profit-booking, while Consumer Durable, IT and Tech sectors firmed up on good buying enquiries.

Small-cap and Mid-cap shares also declined sharply by 5.63 per cent and 4.36 per cent, respectively, on panic selling triggered by speculation that pledged holdings are

being sold.

The BSE benchmark Sensex resumed higher at 19,365.33 and moved in a wide range of 19,411.18 and 18,793.97 before ending the week at 18,918.52, a net loss of 398.49 points or 2.06 per cent. It has lost 1,185.01 points or 5.89 per cent in five weeks.

The NSE 50-share Nifty also dropped by 130.60 points or 2.23 pct to 5,719.70. It fell by 354.95 points or 5.84 pct in the last five weeks.

Banking stocks suffered heavy losses on liquidity concerns in banking system after government set target for gross market borrowing at Rs 6.29 trillion this fiscal.

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.

The sensex bounced back on Friday on value-buying after the Finance Ministry promised to address concerns over Tax Residency Certificate (TRC).

In the Lok Sabha Railway Minister Pawan Kumar Bansal hiked freight tariff of less than five per cent, effective from April 1 this year.

"There was nothing exciting in the budget and the freight rate hike could push

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