Sensex Drops Over 600 Points

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The S&P BSE Sensex and NSE Nifty 50 Indexes fell for second straight session after Finance Minister Nirmala Sithraman, while presenting Budget for financial year 2019-20 on Friday, proposed to increase minimum public shareholding in the listed companies. “I have asked SEBI to consider raising the current threshold of 25 per cent to 35 per cent,” Ms Sitharaman said in her first Budget speech. The Sensex in Monday’s session fell nearly 600 points and the NSE Nifty 50 Index dropped below its crucial psychological level of 11,650. Auto and banking shares were among the worst performers in today’s session amid broad-based selling pressure.
As of 11:05 am, the Sensex traded 1.49 per cent or 589 points lower at 38,925 and the NSE Nifty index slumped 1.52 per cent or 179 points to 11,632.

“The markets seem to be disappointed with Budget announcements,” AK Prabhakar, head of research, IDBI Capital, told NDTV.

Selling pressure was broad-based as all the sector gauges compiled by National Stock Exchange were trading lower led by the Nifty PSU Bank Index’s 5.5 per cent drop. Realty, Auto, Bank, Financial Services, Media and Private Sector Bank gauges also fell between 2 and 3 per cent each.

Mid- and small-cap shares were also facing selling pressure as the Nifty Midcap 100 Index fell 2.55 per cent and Nifty Smallcap 100 Index declined 2.27 per cent.

In the Nifty 50 basket of shares 45 were declining led by the Hero MotoCorp’s 4.8 per cent decline. ONGC, Bajaj Finance, Indian Oil, State Bank of India, Larsen & Toubro, Grasim Industries, NTPC, Tata Motors, Bharat Petroleum, Maruti Suzuki, ICICI Bank and Eicher Motors were also among the losers, down 2.77 and 4.64 per cent.

On the flipside, Yes Bank, HCL Technologies, Bharti Infratel, TCS and Tech Mahindra were among the notable gainers.

The market breadth was extremely negative as 1,431 shares were declining while 252 were advancing on the BSE.

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