Sensex, Nifty crash post budget announcements

Tags: News
The market euphoria evaporated after the NDA government presented its maiden Railway and Union Budget this week as investors felt there was lack of big-bang initiatives, sending Sensex and Nifty down over 3.5 per cent.

The week saw the Sensex crossing 26,000-mark and Nifty registering 7,800 during intra-day trade for the first time in the history, but there was also this post-budget slide not seen since July 2009.

Extreme caution resulted intense profit-booking as investors rued of budgets lack of far-reaching reforms and absence of subsidies and above all of concerns over GAAR (General Anti-Avoidance Rules).

Renewed Eurozone debt concerns on reports of Portugal's biggest listed bank, Banco Espirito Santo, missing debt payments also added the disappointment.

Barring FMCG and IT counters, profit-booking was witnessed in Power, Capital-Goods, Realty, PSUs, Consumer Durables, Metals, Auto and Banking sectors.

Broader markets including shares of mid-cap and small-cap companies also saw intense selling.

The Sensex opened sharply higher at 26,039.67 and surged to an all-time high of 26,190.44 but fell back to a low of 24,978.33 before ending at 25,024.35, showing a fall of 937.71 points or 3.61 per cent.

The NSE 50-share Nifty also climbed to an all-time high of 7,808.85 before finishing the week at 7,459.60, showing a dip of 292.00 points or 3.77 per cent.

Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 2362.42 crore during the week, including provisional data of July 11.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi’s latest ban on 260 entities plugs a major loophole for stock manipulation

    Last week, the capital market regulator, Securities and Exchange Board of India (Sebi) banned 260 entities from dealing in the securities market for m

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Kumar Jain

Nuances in managing joint ventures

This is an age of collaboration. A seemingly simple device ...

Kuruvilla Pandikattu SJ

Finding the missing child of Christmas

Christmas is basically the feast of a helpless child. The ...

Shona Adhikari

Why Indian art auctions are here to stay

With Christie’s second India sale just over in Mumbai, we ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture