Sensex Crash Today: Budget fails to impress markets, sensex dives 988 points to close at 39,736; Nifty ends below 11,650 | India Business News
The benchmark BSE sensex dived 987.96 points or 2.43 per cent to finish at 39,735.53. While, the broader NSE Nifty closed 318.30 points or 2.66 per cent lower at 11,643.80.
Top losers in the sensex pack include ITC, HDFC, LT, SBI, ONGC, ICICI Bank and M&M with their shares falling as much as 6.74 per cent. 25 out of 30 stocks ended in red.
While, TCS, Hindustan Unilever, Nestle India, Tech Mahindra and Infosys were the only gainers.
On NSE, except for Nifty IT, all sub-indices finished in red with Nifty Realty, Media, PSU Bank, Financial Services plunging up to 8.16 per cent.
Experts said the Budget has been below par considering investors had extremely high expectations from the government to revive the economy.
Presenting the Union Budget, Nirmala Sitharaman proposed to remove dividend distribution tax (DDT) on companies, effectively shifting the tax burden to recipients at the applicable rate.
She said certain government securities will be open for foreign investors, adding that the Centre plans to increase investment limit for FPIs (foreign portfolio investors) in corporate bonds from 9 per cent to 15 per cent.
The government also pegged fiscal deficit at 3.8 per cent in the current fiscal, compared to the earlier target of 3.3 per cent of GDP. It estimated nominal GDP growth for 2020-21 at 10 per cent.