Market take heavy beating, tumble 983 points for the week
The budget proposals of 10% long term capital gains tax on equities and overshooting of fiscal deficit target quashed investor optimism
Finally, the market cracked the impressive eight-week record setting-run, thanks to the much awaited Union Budget, the Sensex were severely beaten to tumble 983.69 points to finish at 35,066.75 and the broder Nifty slid well below the key 11,000-mark at 10,760.60.
The key indices resumed the record-setting cycle on Monday following the upbeat economic survey tabled in Parliament ahead of the budget reiterating India would be the world fastest growing economy with GDP estimates of 7-7.5 percent 2018-19, giving fresh impetus to investor sentiment.
It was shortlived, as the anxiety ahead of Union- Budget and subsequent tabling brought-out big disappointment as far as investors is concerned, while it was nothing short of blood-bath in Dalal-street as Bears gained upper-hand.
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Investor expectation of good balance between fiscal discipline amid growth withered on Budget proposals tabled in the Parliament by Finance Minister Arun Jaitley.
The budget proposals of 10 per cent long term capital gains tax on equities and overshooting of fiscal deficit target quashed investor optimism.
The volatility in rupee and bonds over fiscal slippage along with primary concern over further rise in inflation amid RBI taking more hawkish tone in upcoming monetary policy meet led to the market turmoil.
The Sensex started the week higher at 36,106.36 and hovered between all-time record high of 36,443.98 before budget and subsequent tumble after the budget at 35,006.41, it closed the week at 35,066.75, showing a slump of 983.69 or 2.73 per cent.
(The Sensex garnered 3,578.59 points or 10.90 per cent during past eight week sessions).
The Nifty also resumed the week up at 11,079.35 and marked all time high of 11,171.55 and later to a low of 10,736.10 before ending the week at 10,760.60, showing a fall of 309.05 points, or 2.79 per cent.
All the sectoral indices got severely punished led by Realty, Consumer Durables, HealthCare, PSUs, Power, Metals, Banks, Oil&Gas, Capital Goods, FMCG, IPOs, Teck, Auto and IT sectors.
The broader midcap and small cap shares also took heavy a hammering.