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Budget Wields Axe on Sensex

In the absence of any pro-market reforms, Indian stock markets dived dramatically

The much-hyped and much-awaited Budget 2009-10, tabled by Finance Minister Pranab Mukherjee today failed to elevate the spirits in the markets.

In contrast to the loads of market reforming and encouraging policies expected, what emerged was a damp squib causing the bourse to nosedive to huge lows.

Though the government has given a thrust to infrastructure spending and brought in other reforms like raising income tax exemption limits, the markets, which had rallied till now, came down sharply almost as soon as the Budget was tabled.

The Bombay Stock Exchange closed at 14, 043.40 points, down by 869.65 points or -5.83 per cent. The index touched an intra-day low of 13,959.44 and high of 15,097.87.

BSE Midcap index was down 5.17 per cent and BSE Smallcap index declined 4.50 per cent.

BSE Realty Index fell 7.28 per cent, BSE Bankex slipped 8.17 per cent and BSE Metal Index was down 6.57 per cent.

Stocks of Reliance Infrastructure, Educomp Solutions, Areva, Central Bank and ICICI Bank Limited fell sharply after the Budget announcements.

While Reliance Infrastructure closed at Rs 1,131.05 in comparison to its previous close of Rs 1,292.25, a dive of 12.47 percent, Educomp Solutions closed at Rs 3,912.50 in comparison to Rs 4,440.35, registering a dive of 11.89 per cent.

Similarly Central Bank closed at Rs 86.85 in comparison to Rs 97.05, registering a dive of 10.51 per cent, ICICI Bank Limited closed at Rs 678.00 from its last close of Rs 754.05, a dive of 10.09 per cent.

At the same time, Areva  closed at Rs 308.35 from its previous close of Rs 347.20, a dive of 11.19 per cent while Reliance Capital Limited too feel and closed at Rs 833.50 from its previous close of Rs 937.90, a dive of 11.13 per cent.

However, despite the turmoil, Ranbaxy Laboratories managed to close at Rs 260.70 from its previous close of 250.55, registering an increase of 4.05 per cent. At the same time, ITC Limited remained a gainer after closing at Rs 197.80 from its previous close at Rs 191.80, an increase of 3.13 per cent.

Titan India, Hindustan Unilever, and Asian Paints too were clear gainers after registering an increase of 2.97 per cent, 0.99 per cent and 0.05 per cent respectively.

A look at the historic falls that the Sensex has registered in recent times reveals that it fell 10.96 per cent on October 24, 2008 while the next biggest fall that it registered was on January 21, 2008 when it dipped by 7.41 per cent. Sensex had shed 7.25 per cent on January 7 this year too.

Similarly, the next biggest fall by the Sensex was on October 10, 2008 when it dived by 7.07 per cent. The Sensex again registered a dip of 6.61 and 6.03 per cent in November 2008 and March 2008 respectively. Today’s drop by the Sensex is the biggest in 6 months.

 

Top Gainers Group A
Company     Last Traded Price    Previous close    Change (%)
Ranbaxy Laboratories   260.70   250.55   4.05
ITC   197.80   191.80   3.13
Titan   1237.80   1202.15   2.97
Hindustan Unilever   275.90   273.20   0.99
Asian Paints   1193.45   1192.90   0.05
Top Losers Group A
Company     Last Traded Price    Previous close    Change (%)
Reliance Infrastructure   1131.05   1292.25   -12.47
Educomp Solution   3912.50   4440.35   -11.89
Areva   308.35   347.20   -11.19
Reliance Capital   833.50   937.90   -11.13
Central Bank   86.85   97.05   -10.51