Sensex Plunges Over 400 Points, Nifty Slides Below 11,700
- At 9:21 am, the Sensex traded 385.04 points - or 0.97 per cent - lower at 39,128.35 while the Nifty was down 122.20 points - or 1.03 per cent - at 11,688.95.
- Market breadth highlighted a sharp fall, with only 278 stocks trading higher on the NSE against 1,284 suffering with losses. On the BSE, 300 stocks advanced while 1,088 declined.
- Top laggards on the 50-scrip index at the time were Hero MotoCorp, Bajaj Auto, Maruti Suzuki India, Tata Motors and Yes Bank, trading between 2.21 per cent and 4.62 per cent lower.
- HDFC Bank, Larsen & Toubro and Reliance Industries were the top drags on the Sensex.
- The government stuck to the borrowing target announced in an interim budget in February and cut the fiscal deficit goal to 3.3 per cent of gross domestic product for the current year ending March 31, 2020, from an earlier, upwardly revised target of 3.4 per cent. The Budget proposed raising the current threshold of 25 per cent minimum public shareholding in the listed companies to 35 per cent.
- "The market was hoping for supportive actions from the government which was not provided in the budget," said Vinod Nair, head of research at Geojit Financial Services. "This was undoubtedly due to the bleak fiscal position given the slowdown in domestic and global market."
- Equities in other Asian markets were broadly weaker tracking Wall Street which fell from record highs last week, with MSCI's broadest index of Asia-Pacific shares outside Japan losing more than 1 per cent.
- Japan's Nikkei faltered 0.9 per cent. Chinese shares started lower with the blue-chip index off 1.7 per cent and Hong Kong's Hang Seng index down 1.5 per cent. South Korea's KOSPI was off 1.8 per cent and Australian shares slipped about 1 per cent to a five-week low.
- Strong US jobs data tempered expectations for a rate cut by the Federal Reserve while share sentiment was also dampened by US investment bank Morgan Stanley's decision to reduce its exposure to global equities due to misgivings about the ability of policy easing to offset weaker economic data.
- The S&P BSE Sensex had shed 394.67 points - or 0.99 per cent - last Friday, and the NSE Nifty declined 1.14 per cent, after the presentation of Union Budget for 2019-20 in Parliament by the government.
(With inputs from agencies)
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