Sensex crashes 840 points; Nifty ends below 10,800-mark

Closing bell: The Sensex plummeted 840 points, its biggest single-day fall in two-and-a-half years, while the Nifty ended below the 10,800-mark as the post-Budget sell-off continued for the second straight day.

Long-term capital gains tax on equities and and 10 per cent tax on distributed income from equity-oriented mutual funds dampened the domestic sentiment.

Market mood suffered another setback after Fitch Ratings today said high debt burden of the government constrains India’s rating upgrade.

The S&P BSE Sensex crashed 839.91 points or 2.34 per cent to end at 35,066.75. This is its biggest single session fall since August 24, 2015, when it had lost 1,624.51 points.

The Nifty50 cracked below the 10,800-mark to close down by 256.30 points or 2.33 per cent at 10,760.60. Intra-day, it hit a low of 10,736.10.

BSE sectoral indices

NSE sectoral indices

 

BoB pref. issue : The board of Bank of Baroda will meet on February 9 to decide on the allotment of shares on a preferential basis to the government in lieu of a capital infusion of Rs 5,375 crore. Read more

 

Bonds recover sharply : Indian bonds rallied on Friday, recovering from losses that earlier sent benchmark 10-year yields up as much as 8 basis points, on a media report the central bank might buy bonds from the open market to support the country's weakening debt markets. Read more

 

GVFL Ltd, made yet another exit with a multi-bagger return of 7 times of its investment in a biotech solutions provider Axio Bio Solutions.  Read more

The post-Budget sell-off dragged the Sensex down by 900 points, while the broader Nifty cracked the 10,800-mark on all-round selling. Long-term capital gains tax on equities and and 10 per cent tax on distributed income from equity-oriented mutual funds dampened the domestic sentiment.

Market mood suffered another setback after Fitch Ratings today said high debt burden of the government constrains India’s rating upgrade.

The 30-share BSE index Sensex tanked 900.25 points to an intraday low of 35,006.41 and the Nifty50 slumped 270.3 points to 10,746.60.

 

YES Bank will raise $600 million (approx ₹3,830 crore) through issuance of fixed term notes under its $1 billion Medium Term Note (MTN) programme.

“The Capital Raising Committee of the board...apporved the issuance and allotment of fixed term notes for an aggregate principal amount of $600 million under the $1 billion Medium Term Note Programme of the bank,” YES Bank said in a BSE filing.

 

Domestic equities tumbled nearly 2.2 per cent at the pre-close trade as the Budget proposal on long-term capital gains tax and widening of fiscal deficit target to 3.3 per cent of GDP from the previous 3 per cent dampened investor sentiment. Added to this, Fitch Ratings today said that high debt burden of the government constrains India’s rating upgrade. The Sensex was trading lower by 741.79 points or 2.07 per cent at 35,164.87 after hitting an intraday low of 35,140.89 and the Nifty down by 229.05 points or 2.08 per cent at 10,787.85 after hitting a low of 10,786.75.

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Domestic equities tumbled nearly 2 per cent as the Budget proposal on long-term capital gains tax and widening of fiscal deficit target to 3.3 per cent of GDP from the previous 3 per cent dampened investor sentiment. Added to this, Fitch Ratings today said that high debt burden of the government constrains India’s rating upgrade. The Sensex was trading lower by 568.05 points at 35,338.61 after hitting an intraday low of 35,295.70 and the Nifty down by 167.15 points at 10,849.75 after hitting a low of 10,832.

BSE sectoral indices

 

Nifty futures : Traders can make use of intra-day rallies to sell the contract while maintaining a fixed stop-loss at 10,910 levels. Key immediate resistances are at 10,880 and 10,900. Click here to read more

 

 

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Parag Parikh fund : Well-managed funds with a value-investing focus are a good choice for long-term wealth creation. Parag Parikh Long Term Value Fund fits the bill well. Click here to read more

 

Gold prices: Spot gold had dipped 0.1 per cent to $1,347.40 per ounce by 0326 GMT. It has also fallen 0.1 per cent so far this week. US gold futures were up 0.2 per cent at $1,351 per ounce. More on this

 

Comex gold : Prices could now consolidate in the $1,290-$1,320 before edging higher towards $1,352-55 zone. As expected, prices have come to the important resistance around $1,355 and moved even beyond that. Click here to read the full article

 

Rupee weakens : The rupee depreciated by another 17 paise to 64.19 against the dollar at the interbank foreign exchange market today due to concerns over widening fiscal deficit. More on this

 

The Sensex tanked over 610 points and the Nifty slumped 185 points as Fitch Ratings says weak public finances constrain India’s sovereign ratings. Domestic sentiment was already hit on the government’s proposal to impose a 10 per cent long-term capital gains tax on equities sale of over Rs 1 lakh and 3.5 per cent fiscal deficit projection for the current fiscal.

At 12.25 pm, the 30-share BSE index Sensex was trading lower by 565.23 points or 1.57 per cent at 35,341.43 and the 50-share NSE index Nifty down by 164.65 points or 1.49 per cent at 10,852.25.

 

BSE sectoral indices

 

 

India's credit rating : Fitch Ratings today said the high debt burden of the government constrains India’s rating upgrade, a day after Finance Minister Arun Jaitley projected a fiscal deficit of 3.5 per cent of GDP against the earlier target of 3.2 per cent. More on this

 

Budget effect : The implementation of the long-term capital gains tax at 10 per cent on gains over ₹1 lakh triggered a sell-off in the indices: the Nifty slumped below 11,000 and the Sensex below 35,800. However, the sell-off didn’t last long and the benchmark indices bounced back into the green, backed by short-covering and buying interest at lower levels. Read more

 

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HDFC Medium Term Opportunities Fund : The sudden spike in bond yields over the past three months by about 70 basis points has rattled investors. With inflation inching up and concerns over fiscal slippages taking centre stage, bond yields can remain within a narrow range with an upward bias. Click here to read more

 

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The Sensex tanked nearly 600 points and the Nifty plunged nearly 200 points as Fitch Ratings says the high debt burden of the government has constrained India’s rating upgrade, a day after Finance Minister Arun Jaitley projecting a fiscal deficit of 3.5 per cent of GDP against the earlier target of 3.2 per cent.

The 30-share BSE index Sensex tanked 591.69 points to 35,314.97 and the 50-share NSE index Nifty slumped 184.9 points to 10,832.

BSE sectoral indices

NSE sectoral indices

Top losers on BSE

Top losers on NSE

 

Godrej Properties  has entered into a joint venture with local developers and land-owners to develop three real estate projects in Bengaluru and Noida. The company shares plunged as much as 2.7 per cent to Rs 786.20 against the previous close of Rs 808.80.

 

Nikkei drops: The Nikkei dropped 1.3 per cent to 23,188.25 in midmorning trade. For the week, it has dropped 1.9 per cent. The broader Topix shed 0.9 per cent to 1,853.89, with 32 of its 33 sectors falling. Read more

 

US dollar : The dollar index, which tracks the greenback against a basket of six major rivals, was nearly flat on the day at 88.659 , holding above a three-year low of 88.429 set one week ago but still down 0.4 per cent for the week. More on this

 

FPI inflows: The introduction of long-term capital gains tax in equities is not going to have a major impact on the foreign portfolio investors’ flow into the Indian equity market. Read more

 

Bond markets in for a rocky ride : Caught between the devil and the deep blue sea, the Centre chose to up spending and slip on its fiscal deficit target, rather than stay the course on fiscal deficit. Click here to read more

 

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Will broking firms beat LTCG blues? : Shares of broking companies such as Motilal Oswal, Geojit, Religare Enterprises, and Aditya Birla Money will remain in focus on the re-introduction of long-term capital gains tax. Read more

 

The Sensex plunged over 260 points in the morning trade as the imposition of long-term capital gains tax in equities dampened investor sentiment. The 30-share BSE index Sensex was trading lower by 264.44 points or 0.74 per cent at 35,642.17 and the 50-share NSE index Nifty down 72.6 points or 0.66 per cent at 10,944.30.

Among BSE sectoral indices, consumer durables plunged the most by 3.49 per cent, followed by realty 1.98 per cent, infrastructure 1.77 per cent and banking 1.66 per cent.

 

Top five Sensex gainers were ITC, Dr Reddy's, Infosys, Sun Pharma and TCS, while the major losers were HDFC, ONGC, IndusInd Bank, Kotak Bank and Adani Ports.

 

 

BSE, Hindalco results: About 60 companies, including BSE, Hindalco and Tata Global, will declare their Q3 results today. More on this

 

Blow to stock market investors: For shares and units in equity-oriented mutual funds sold after one year of holding, a long-term capital gains tax will now be chargeable at 10 per cent on gains of over ₹1 lakh. Click here to read the full article

 

15 minutes that shook the Sensex : Fifteen minutes during Finance Minister Arun Jaitley’s Budget speech caused panic in dealing rooms of most stock broking houses yesterday. Click here to read the full text

 

Asian markets : The euro neared multi-year peaks on Friday as talk of policy tightening in Europe and expectations that inflation is set to gear higher drove up borrowing costs globally. Read more

 

The S&P BSE Sensex plunged 199.06 points or 0.55 per cent to 35,707.60 and the Nifty50 dropped 78.7 points or 0.71 per cent to 10,938.20.