Both benchmark share indices declined sharply on Monday, with the losses in the BSE Sensex adding up to nearly 1,000 points since the government presented the Union Budget on Friday.
The Sensex was down over 900 points at its lowest level, and breached the 39,000-mark. At closing, it was down 792.82 points to 38,720.57, while the National Stock Exchange Nifty 50 was 247.20 points lower than Friday’s close, at 11,564.
Monday is the second consecutive day after the Budget that the the markets have had losses. On Friday, the stock markets had fallen sharply after Finance Minister Nirmala Sitharaman presented the first Union Budget of the Narendra Modi-led government’s second tenure. The BSE Sensex, which had risen above 40,000 points before the Budget speech, closed nearly 400 points down at 39,513.39.
Among the Sensex stocks, Bajaj Finance was the biggest loser, falling nearly 9%, on Monday. Shares of NTPC, L&T, Hero MotoCorp, Maruti Suzuki and Oil and Natural Gas Corporation fell between 4% and 6%. Yes Bank, HCL Technologies and Tata Consultancy Services were among the top gainers on both.
Analysts told Mint that the Budget proposal to increase the minimum public shareholding in listed companies from 25% to 35%, the lack of a major plan for a fiscal stimulus, and higher taxation on the rich dampened market sentiment.
On the currency front, the Indian rupee depreciated 30 paise to 68.72 against the US dollar.
Limited-time offer: Big stories, small price. Keep independent media alive. Become a Scroll member today!
Our journalism is for everyone. But you can get special privileges by buying an annual Scroll Membership. Sign up today!