Sensex fall is second worst in 11 years |
Monday saw Indian stock benchmarks Sensex and Nifty plummet for a second straight session to their biggest single ¬day fall since 2016 due to heavy losses in PSU bank, realty, power and auto stocks as the much hyped Union Budget, failed to provide any impetus to the stock market. The fall was the biggest since April 2016 in percentage terms. Over Rs 5 lakh crore of equity investor wealth got wiped out in its last two sessions as analysts felt that Budget lacked any broad stimulus measures to revive the slowest economic growth in five years. Long term capital gains tax has increased for FPIs, which the market did not like. Buyback tax and the plan to increase in public shareholdings after few years are a few other reasons which hit the market badly. Punjab National Bank`s fraud disclosure was another factor which hit the already reeling market and banking stocks fell sharply. Realty sector also took a beating, as BSE Realty index shed 3.5 per cent. Auto index saw biggest intraday decline since February after the government in Budget lowered goods and services tax (GST) on electric vehicles to 5 percent from 12 percent and raised basic customs duty on auto parts.
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