STOCK MARKET BSE NSE

Sensex drops over 250 points as Budget tax proposals spook investors; TCS down two per cent

After dropping over 253 points in opening session, the 30-share index pared some losses to trade 152.50 points, or 0.39 per cent, lower at 38,568.07 at 0930 hours.

Published: 09th July 2019 11:50 AM  |   Last Updated: 09th July 2019 11:50 AM   |  A+A-

sensex, nifty, stock exchange, shares

For representational purposes (File Photo | Reuters)

By PTI

MUMBAI: Domestic equity benchmark BSE Sensex fell over 250 points in early trade Tuesday dragged by losses in HDFC twins and TCS as Budget tax proposals continued to spook investors.

After dropping over 253 points in opening session, the 30-share index pared some losses to trade 152.50 points, or 0.39 per cent, lower at 38,568.07 at 0930 hours.

Similarly, the broader Nifty shed 49.25 points, or 0.43 per cent, to 11,509.35.

TCS was among the top losers in the Sensex pack, falling up to 1.79 per cent, ahead of its quarterly results, scheduled to ba announced later in the day.

HDFC twins, Asian Paints, Kotak Bank, HUL, Bajaj Finance and Axis Bank too fell up to 2.19 per cent.

On the other hand, Yes Bank, PowerGrid, Sun Pharma, NTPC, L&T, RIL and Vedanta were among the gainers, rising up to 2.90 per cent.

In the previous session, the 30-share gauge saw its biggest single-day loss this year so far, settling at 38,720.57 points, showing a sharp loss of 792.82 points or 2.01 per cent.

The Nifty too tanked 252.55 points, or 2.14 per cent, to close at 11,558.60 points.

On a net basis, foreign institutional investors sold equities worth Rs 401.99 crore, while domestic institutional investors purchased shares to the tune of Rs 321.13 crore, provisional data available with stock exchanges showed Monday.

The Union Budget proposal to raise the public shareholding threshold to 35 per cent from the current 25 per cent and higher tax incidence for foreign portfolio investors and high net-worth individuals kept investors jittery, traders said.

"Fiscal prudence (in the Budget) was contrary to the market's expectation which was hoping for a stimulus in the slowing economy," said Vinod Nair, Head of Research, Geojit Financial Services.

Focus has shifted to the upcoming quarter result where expectation remains muted, volatility is likely to prevail, he added.

Persistent weakness in global equities amid expectation of dovish US Federal Reserve policy too weighed on investor sentiment here, they added.

Shanghai Composite Index, Hang Seng and Kospi were trading lower in their respective early sessions, while Nikkei was trading in the green.

On the currency front, the Indian rupee depreciated 17 paise to 68.83 against the US dollar.

Meanwhile, the global oil benchmark Brent crude futures were trading 0.22 per cent lower at 63.97 per barrel.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp