Stock markets have extended their post-budget reaction on Monday. BSE Sensex lost nearly 620 points and went below the psychological 39,000 levels while the 50-stock Nifty crashed over 200 points to around 11,612 levels. The Bank Nifty index crashed 750 points and touched 30,729 levels. Public sector, consumer goods, infrastructure and realty stocks are the major losers in the intraday trade. This has happened amid heavy selloff by FIIs.
Commenting on the market scenario Anindya Banerjee, Deputy Vice President at Motiwal Oswal said, “Post-budget 2019, the Indian bond market is expected to attract foreign funds in bulk and this selloff is caused by the FIIs fishing out their money from the Indian equity market and they may park their money from now onwards into the Indian bond market as the Indian bond market gives highest returns in comparison to other emerging and developed economies.
Closing bell: Facing FIIs wrath over surcharge being levied on the small term capital gains on equity, the BSE Sensex crashed 792 points and closed at 38,720 while the 50-stock Nifty nosedived 252 points to 11,758 levels. Bank Nifty closed at 30,603 after losing 871 points.
Realty stocks also witnessed huge selloff pressure in the intraday trade. BSE Realty index crashed near 3.3 per cent today. Realty major Oberoi Realty share price fell near 4.9 per cent, shares of Phoenix Mills dipped 4.78 per cent, Sunteck Realty went down 3.47 per cent, DLf counter went off 2.3 per cent, Housing Development & Infrastructure stocks nosedived 3.92 per cent while Indiabulls Real Estate went off near 2 per cent.
Auto stocks went through huge selling by the FIIs as the BSE Auto index crashed over 3.2 per cent. Auto major Maruti Suzuki share price dipped near 5.2 per cent, Apollo Tyres share price crashed 4.32 per cent, Ashok Leyland stocks went down 3.33 per cent, Bajaj Auto went off 2.3 per cent, Eicher Motors counter nosedived 2.94 per cent, Hero MotoCorp went down 5.45 per cent, MRF went southward to the tune of 2 per cent, Motherson Sumi Systems corrected over 4 per cent, TVS Motor Company scrip cooled down 3.16 per cent while shares of Tata Motors went southward near 3.5 per cent.
The Modi 2.0 government’s decision to levy the surcharge on the Short Term Capital Gains on equity has not gone down well among the FIIs. They are showing their anger through heavy selloff as their favorite stocks in Banking and finance, IT and auto sector is witnessing the major crash today.
Banking stocks are under huge stress as the FIIs are fishing out their money from the Indian equity market. Banking major State Bank of India or SBI share price has crashed over 4 per cent, Axis Bank slipped 2.52 per cent, Federal Bank went down around 2 per cent, HDFC Bank counter crashed near 2.1 per cent, ICICI Bank and IndusInd bank scrip dipped 1.94 per cent respectively while Kotak Mahindra Bank went down 2.57 per cent.
Public sector stocks have led the blood bath at Dalal Street as the BSE PSU index went down near 3.68 per cent. Public sector major Allahabad Bank share price crashed 5.57 per cent, Andhra Bank shares dipped 3.15 per cent, shares of Bank of India dipped 7.57 per cent, Canara Bank counter crashed to the tune of 5.74 per cent, Engineers India stock tanked near 3.5 per cent, Housing and Urban Development Corporation shares went down 3.82 per cent, Hindustan Petroleum Corporation Ltd or HPCL counter went southward 3.53 per cent respectively.