With a fall of over 150 points in benchmark Sensex on the Budget Day on Monday, this is the eighth time in last 10 years that the markets have suffered losses on the most important listed economic event of the year.
In a sharp knee-jerk reaction to various tax proposals made by Finance Minister Arun Jaitley in his Budget 2016-17, the stock market benchmark Sensex crashed sharply intra-day.
The BSE benchmark Sensex witnessed wild swings and finally ended at 23,002, down 152.30 points after falling 659.69 points to 22,494.61 -- its 52-week low -- during the day.
The NSE Nifty also sank by 42.70 points to end at 6,987.05.
In 2015, the Sensex had gained 0.48 per cent -- recording its first rise on a Budget day in 4 years.
In the previous three sessions on Budget 2014, 2013 and 2012, the index had ended lower.
Prior to that in 2011 and 2010, markets had gained 0.69 per cent and 1 per cent, respectively.
Sensex had witnessed a sharp fall of 5.83 per cent in 2009 when Budget was presented.
Markets saw a similar fate in the previous two years, with a fall of 1.37 per cent and 4 per cent in 2008 and 2007, respectively.
In 2006, the blue-chip index had gained 0.85 per cent.
Sentiment turned weak by the proposal for higher dividend distribution tax on those earning more, and a proposal to increase Securities Transaction Tax in some categories.
"From a capital market perspective there is a huge sense of relief that long term capital gains tax is status quo.
“However, increase STT on options and dividend tax on above 10 lacs dividend receipts is disappointing," said Krishna Kumar Karwa, Managing Director, Emkay Global Financial Services Ltd.
Image: A broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai. Photograph: Shailesh Andrade/Reuters
