Budget blues hit markets; Sensex falls over 1000 points, Nifty 300 points

A host of feel-good proposals failed to bring cheer to the market, with the Sensex slumping nearly 1060 points after Finance Minister Nirmala Sitharaman's Budget 2020-21 presentation on Saturday.

The BSE Sensex slumped 1,060 points to 39,680 and the NSE Nifty 310 points to 11,651. Bank Nifty also crashed 1,056 points at 29,777.60, as selling aggravated further. Selling pressure  

The market had been expecting some tweaks in long-term capital gains (LTCG) tax and security transactions tax. As there was no mention of these, markets across the board came under selling pressure.

While the personal income-tax rebate, abolition of dividend distribution tax (DDT) and the listing of Life Insurance Corporation of India were major announcements, these too failed to cheer marketmen.

The DDT removal is good news for investors, as it increases what finally reaches their pockets. However, such receipts are now taxable in their hands. Those above the 20 per cent tax slab will now shell out more tax on their dividend income. Indices in the red

Except the Nifty IT and Nifty FMCG indices, all the other indices are trading in red. The biggest loser is Nifty Realty (down 4.70 per cent), followed by Nifty Financial Services (down 2 per cent) and Nifty Bank (down 1.47 per cent).

Indices in the red

Except the Nifty IT and Nifty FMCG indices, all the other indices are trading in red. The biggest loser is Nifty Realty (down 4.70 per cent), followed by Nifty Financial Services (down 2 per cent) and Nifty Bank (down 1.47 per cent). Even broader indices such as the BSE Midcap, BSE SmallCap and BSE-500 fell in excess of 1.5 per cent.

Against 596 stocks that rose on the BSE, 1706 are ruling in the red.

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