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Fri, 16 Mar 2012 19:26:25 GMT

Budget fails to cheer markets; Sensex plunges 210 points

Mumbai: The stock markets reacted negatively to what many market experts perceived to be a ‘lacklustre’ Union Budget presented by the Finance Minister, Pranab Mukherjee, on Friday.

Defence budget hiked by 17 per cent

After experiencing early gains and much volatility throughout the day, both the Indian benchmark indices closed in the red.

The Nifty was down 63 points or 1.16 per cent at 5,318, while the Sensex fell 210 points or 1.19 per cent to close at 17,466. Except for auto and FMCG sectors, all the sectoral indices closed in the red with oil and gas and power sectors being among the worst-hit.

"Auto and FMCG were the only sectors to move up today as there was no higher diesel tax announcement and no increase in tax on tobacco in the Budget. This helped stocks like ITC move up," said Mr Alex K. Mathews, Head Technical and Derivatives Research, Geojit BNP Paribas Financials Ltd. "Investors who had taken positions in the morning session sold off in the second half.

ONGC and Cairn stocks contributed to the selling pressure as the Budget announced an increase in the cess on crude oil. Going forward also the market should see a selling pressure," he added. Volatility was down, with the India Vix closing down 9 per cent at 23.13

ITC, Mahindra & Mahindra, Ambuja Cements, Maruti and HUL were the top five Nifty gainers while Sun Pharma, Cairn, ONGC, Siemens, and NTPC were the losers on the Nifty.

Source: Business Line

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