The budget fails to impress the markets, sensex falls 988 points to close at 39,736; Nifty ends below 11,650

NEW DELHI: Saturday's equity indexes fell sharply after the finance minister, Nirmala Sitharaman, presented the Union Budget 2020-21, tracking a massive sale of capital goods and financial actions.

Reference point BSE sensex 987.96 points or 2.43 percent dove to finish at 39,735.53. Meanwhile, the broader NIF NSE closed 318.30 points or 2.66 percent less at 11,643.80.

The main losers in the sensex package include ITC, HDFC, LT, SBI, ONGC, ICICI Bank and M&M with a drop in their shares of up to 6.74 percent. 25 of 30 actions ended in red.

While TCS, Hindustan Unilever, Nestle India, Tech Mahindra and Infosys were the only winners.

Live plus In NSE, with the exception of Nifty IT, all sub-indices ended in red with Nifty Realty, Media, PSU Bank, Financial Services falling to 8.16 percent.

Experts said the Budget has been below average considering that investors had extremely high expectations of the government to revive the economy.

In presenting the Union Budget, Nirmala Sitharaman proposed eliminating the dividend distribution tax (DDT) on companies, effectively transferring the tax burden to the recipients at the applicable rate.

She said certain government securities will be open to foreign investors, adding that the Center plans to increase the investment limit for FPIs (foreign portfolio investors) in corporate bonds from 9% to 15%.