Slipping below 5700, the Nifty has fallen to a three-month low. The Sensex was down 352.93 points or 1.84% at 18799.48, and the Nifty lost 121.70 points or 2.10% at 5675.20.
The market has completely shrugged off the Budget proposals presented by the Finance Minister P Chidambaram today. Slipping below 5700, the Nifty has fallen to a three-month low. The Sensex was down 352.93 points or 1.84% at 18799.48, and the Nifty lost 121.70 points or 2.10% at 5675.20.
Get full Budget coverage: http://www.moneycontrol.com/budget2013/
Top losers on the Sensex continued to be SBI (down 5.1%), Tata Steel, Jindal Steel, ICICI Bank and Maruti Suzuki slipping around 3-4% each. Anil Dhirubhai Ambani Group (ADAG) stocks are getting hammered out of shape. Reliance Communications was down about 8.5 percent. Reliance Infrastructure was down 7.88%.
Vallabh Bhanshali, Chairman, Enam Securities feels that the big disappointment is not spelling out how the current account deficit (CAD) will be dealt with. "Partly, he has said the commerce minister with deal with. Secondly, he has said that as far as gold disincentivising is concerned he is still working out a scheme. I think is a very big area of concern for everyone," he says in an interview to CNBC-TV18.
However, Uday Kotak, Executive VC & MD, Kotak Mahindra Bank thinks that the Budget is therefore good for capital markets, mutual funds, insurance companies. "There is a significant focus and rationalization of many things for these sectors," he adds.