The Sensex recovered 320 points from the day's low of 17,258 to close with a loss of 246 points at 17,579.
Finance Minister P Chidambaram presented his fifth budget for the UPA government on Friday, but was unlucky the third time in terms of market reaction indicating strong resistance from investors on the increase in short-term capital gain tax from the current rate of 10% to 15%.
Last year, the Sensex had dropped over 500 points on weak global markets on account of carry-trade problems and increase in dividend distribution tax.
Only on two occasions in the last five years did the markets end on a positive note with the Sensex moving up 144 points in 2005 and adding 88 points in 2006.
The 2005 budget was hugely positive for the markets in which investors got legitimacy in F&O punting (set-off losses against gains). The 2005 budget also gave relief to the corporate sector by slashing corporate tax to 30% from 35%. The 2006 budget was an India growth story that shrugged off the increase in security transaction tax (STT).
The Sensex opened with a negative gap of 44 points at 17,780 on Friday on negative cues from the global markets. The index extended losses to over 100 points, and thereafter exhibited lacklustre movement till Chidambaram began his speech.
The first major jolt came in banking stocks after the FM announced waiver of Rs 50,000 crore farm loans taken up to March 31, 2007 and outstanding as of December 31, 2007.
The index recovered some ground on buying in auto, FMCG and pharma stocks but then came the second round of selling that saw the index slide to a low of 17,258 - down 566 points - the reason: hike in short-term capital gains tax to 15%.
Selective buying at lower levels saw the Sensex finally end with a loss of 246 points at 17,579.
| Sensex On Budget Day | |||||||
| Year |
Open |
High |
Low |
Close |
Swing |
Net Chg |
% Chg |
| 2008 | 17779.54 | 17779.54 | 17258.20 |
17,578.72 |
521.34 |
(245.76) |
(1.4) |
| 2007 | 13045.12 | 13298.52 | 12800.91 | 12938.09 | 497.61 | (540.74) | (4.0) |
| 2006 | 10308.71 | 10422.65 | 10206.06 | 10370.24 | 216.59 | 88.15 | 0.9 |
| 2005 | 6584.34 | 6721.08 | 6545.94 | 6713.86 | 175.14 | 144.14 | 2.2 |
The BSE Capital Goods, IT and Realty indices plunged nearly 3% each to 16,120, 3,862 and 9,566, respectively. While the Power index dropped 2% to 3,671, the Metal and Oil & Gas indices slipped over 1% each to 16,740 and 11,032, respectively. On the other hand, the Auto and FMCG indices advanced around 1% each to 4,887 and 2,274, respectively.
The NSE Nifty moved in a range of 5,291 to 5,098, before settling with a loss of 62 points at 5,223.
The BSE market breadth was fairly negative - out of 2,743 stocks traded, 1,630 declined, 1,067 advanced and 46 were unchanged on Friday.
Index movers...
SBI recovered smartly from the day's low of Rs 1,953 (down 4.2%) to end with a gain of 3.5% at Rs 2,110.
Maruti soared nearly 4% to Rs 867. Bajaj Auto surged 2.7% to Rs 2,280, and Mahindra & Mahindra added nearly 2% to Rs 693.
Hindustan Unilever moved up over 3% to Rs 227. HDFC was up 1% at Rs 2,803.
... And the shakers
Infosys and Larsen & Toubro plunged over 3% each to Rs 1,547 and Rs 3,523, respectively.
Reliance and DLF tumbled 3% each to Rs 2,458 and Rs 781, respectively.
Satyam slipped nearly 3% to Rs 434. Tata Steel, Wipro and ONGC shed 2.6% each at Rs 802, Rs 435 and Rs 1,012, respectively.
Bharti Airtel and Reliance Energy dropped over 2% each to Rs 826 and Rs 1,568, respectively.
| Major Gainers |
Major Losers | ||||
| Name |
Close |
% Chg |
Name |
Close |
% Chg |
| Tamilnadu Jai Bharath | 15.55 | 274.70 | Gujarat Glass | 347.60 | 20.0 |
| Shreyas Shipping | 103.05 | 19.1 | Roto Pumps | 71.75 | 11.8 |
| Shopper' Stop | 520.00 | 18.1 | Krone Communications | 150.40 | 11.0 |
| Aro Granites | 99.15 | 17.1 | Interational Conveyors | 165.30 | 10.1 |
| Sanghi Inds | 83.90 | 13.0 | Menon Pistons | 67.00 | 10.0 |
| (Close = Stock pirce at the end of day in Rs) | |||||
Value and volume toppers
Reliance Petroleum topped the value chart with a turnover of Rs 328.40 crore followed by Reliance (Rs 251.50 crore), OnMobile Global (Rs 247.30 crore), SBI (Rs 246.40 crore) and Essar Oil (Rs 245.60 crore).
Nagarjuna Fertilisers led the volume chart with trades of around 3.60 crore shares followed by Reliance Petroleum (1.93 crore), IFCI (1.72 crore), Chambal Fertilisers (1.50 crore) and Reliance Natural Resources (1.33 crore).
