The Budget 2020 disappointed the market, with a strong wave of selloff bringing down benchmarks Sensex and Nifty to their biggest single-day fall in nearly five years.
While there was no relief on the long-term capital gains tax (LTCG) and securities transaction tax (STT), the passing on of the dividend distribution tax (DDT) to recipients, too, roiled the sentiment.
The market plunged mainly as a lot of expectations that the D-street had built in the run-up to the budge, did not materialise, said experts.
As many as 221 stocks, including Indiabulls Real Estate, Magma Fincorp, Indiabulls Integrated Services and Reliance Power, hit lower circuit on BSE on February 1.
On the other hand, 86 stocks, including BHEL, Coal India, Havells India, Indian Oil Corporation, ITC, Oil India, ONGC and Jaiprakash Associates, slipped to their 52-week lows.
The Sensex suffered a massive loss of 988 points, or 2.43 percent, to end the Budget Day at 39,735.53. The Nifty finished with a loss of 300 points, or 2.51 percent, at 11,661.85.
In sync with the benchmarks, BSE Midcap and Smallcap indices fell 2.21 percent and 2.20 percent, respectively.
The selloff in the market made investors poorer by over Rs 3.5 lakh crore in a single day as the overall market capitalisation of BSE-listed firms dropped to Rs 153 lakh crore on February 1 from Rs 156.5 lakh crore on January 31.
Among the sectoral indices on BSE, the realty pack plunged 7.82 percent, emerging as the top loser. It was followed by BSE Capital Goods and Industrials indices that cracked 4.79 percent and 3.94 percent down, respectively.