Fight on D Street: Sensex accumulates 988 points in the biggest budget day fall

Finance minister disappointed Dalal Street Investors with their second Budget, since it changed the burden of corporate dividend tax on recipients that will harm promoters, did not yield to expectations of abolishing the long-term capital gains tax on shares and increased the fiscal deficit targets that are expected to keep the interest rate at a high level. As a result, the sensex crashed 988 points, the biggest drop in points from a single session on a Budget day, closed at 39,736, a three-month low. The sharp drop of the day in the market also left the poorest investors for Rs 3.5 lakh crore with the market capitalization of BSE now at Rs 153 lakh crore.

In the session on Saturday, the HDFC group was the most affected since market players say it is a difficult time for companies in the financial sector if the interest rate is still difficult. In addition, insurance and companies were affected by FM's proposal to eliminate IT exemptions for people in favor of lower tax rates. HDFC, ITC, ICICI Bank and HDFC Bank contributed more to the fall of the sensex, while the highest close for TCS, HUL and dampened the fall marginally.

However, the FM changed some rules that are expected to excite foreign funds to invest in India. According to Rashesh Shah, president and CEO of Edelweiss Group, the FM has sent a very positive signal to foreign investors through exemptions to sovereign wealth funds to invest in infrastructure and the abolition of the dividend distribution tax, to reaffirm their faith in India growth story ”. Institutional traders also feel that with central banks willing to inject cash to revive a slowdown in the global economy, IPFs are expected to continue buying India's history.

Live plus Del otro lado del espectro, no se cumplieron las expectativas del mercado sobre fuertes medidas fiscales y de otro tipo para volver a encaminar la economía. La inclusión propuesta de LIC (la aseguradora de vida plus grande de propiedad del gobierno en la India), la abolición del impuesto a la distribución de dividendos son positivos, pero los mercados tenían esperanzas de medidas fiscales para impulsar la economía y el Presupuesto se quedó corto en este aspecto, dijo Raamdeo Agrawal , presidente, Servicios financieros.

La venta del día fue general con los índices de mediana y pequeña capitalización de BSE, ambos cerrando un 2,2% plus bajo. Entre los índices sectoriales, bienes raíces, bienes de capital e industriales que plus perdieron con los índices de TI y Teck cerrando con ganancias marginales. La sesión también registró una salida neta de fondos extranjeros de Rs 1.200 millones de rupias, mientras que los fondos nacionales fueron compradores netos de solo Rs 37 millones de rupias, según datos de la EEB.