Sensex, Nifty end over 2% lower on budget woes, global sell-off

Source: thehindubusinessline.com

After plunging over 907 points during the day, the 30-share BSE index Sensex ended 792.82 points or 2.01 per cent lower at 38,720.57, while the Nifty closed below the 11,600 mark at 11,558.60, down 252.55 points or 2.14 per cent.

Domestic equity benchmark BSE Sensex plummeted 793 points Monday to extend losses for a second straight session, dragged by losses in index major HDFC Bank, L&T and Bajaj Finance, amid Union Budget overhang and heavy selloff in global equities.

The indices were dragged down by the finance and auto stocks.

In the Sensex pack, the major losers were Bajaj Finance, ONGC, Hero MotoCorp, Maruti and NTPC. Yes Bank, HCL Tech and TCS, however, bucked the downtrend by rising up to 5.56 per cent.

Sectorally, Capital goods, realty, power and industrials ended lower by over 3 per cent.

In the broader index, the top losers were Bajaj Finserv, Bajaj Finance, ONGC, IBUL Housing Finance and Hero MotoCorp while the gainers were Yes Bank, HCL Technologies, JSW Steel, Infratel and TCS.

According to traders, the Union Budget proposal to raise public shareholding threshold and higher tax incidence for foreign portfolio investors and high networth individuals continued to spook domestic investors. Besides overhang from the Union Budget, domestic equities extended losses tracking a major selloff in global equities, traders said.

Other Asian markets ended significantly lower as hopes of steep cuts in interest rates by the US Federal Reserve were crushed after the world’s largest economy posted better-than-expected jobs data Friday.

Shanghai Composite Index ended 2.58 per cent lower, Hang Seng plunged 1.54 per cent, Nikkei 0.98 per cent and Kospi tumbled 2.20 per cent. Equities in Europe were also trading lower in their respective early sessions.

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 0.12 per cent higher at 64.31 per barrel.