February 28, was a bad day for the markets from the point of view of the finance ministry's budgetary proposals and the global market melt down.The global market weakness came on the back of the Chinese crisis. The panic was induced by fears over administrative measures to cool the Chinese equity markets.
On the day of the budget, the markets traded extremely subdued throughout the day amidst volatility but lost sharply in late trade and ended in deep red. It was the biggest fall since May 18, 2006. IT, metal, banking and auto stocks were the hardest hit sectors. All the index pivotals closed in red and the markets breadth was extremely negative.
Markets have been trading volatile and today also the weakness persists. It slipped on account of heavy selling witnessed in the banking, cap goods, technology and oil & gas space.
The negative trend in the markets had been continuing for quite some weeks on the back of high inflation and interest rates, but budget proved to be the last straw.
According to the experts, markets are a bit oversold and Budget 2007 was a non-event from market and corporate perspective. Some of the budget proposals like increase in DDT, FBT on ESOPs, did not go well with the market.
On the back of these negative factors, there is a list of 99 stocks that have been trading weak since the day of the budget. Stock prices of these companies between Feb 28 and March 1, showed that these companies have lost in the range of 5-15%. The list includes companies like Kesoram Industries , Prajay Engineering , KPIT Cummins Inf , Sundaram Clayton , Berger Paints , BF Utilities etc. These companies lost their stock prices by 9%, 7%, 6%, 5%, 5%,5% respectively.
