The budget proposals failed to boost the market sentiment due to lack of major incentives for the corporates as the BSE benchmark S&P Sensex on Thursday tanked by almost 291 points to end below 19K-mark after three months at 18,861.54, despite positive global advices.
Profit-booking on the last day of the expiry of February also weighed on the market.
Finance Minister P Chidambaram presenting its eighth annual budget in Parliament raised surcharge on domestic companies to 10 pct from 5 pct whose income exceeds Rs 10 cr and also increased surcharge on dividend distribution tax as the same rate for FY 2013-14, which mainly affected the sentiment, a broker said.
Index heavyweight ITC, however, shrugged off from the market sell-off despit raising excise duty on cigarettes to 18 pct while securities transactions tax (STT) was reduced on equity futures and mutual funds, which could not able to help to stem the downfall.
The Bombay Stock Exchange 30-share gauge resumed higher and touched a high of 19,332.28, up by almost 170 points. But, when the budget proposals filtered in, it fell back sharply to settle at 18,861.54, a net loss of 290.87 points or 1.52 pct.
Last time, it had closed at 18,842.08 on 27 November 2012.
The 50-issue CNX Nifty of the NSE also plunged by 103.85 points or 1.79 pct to end below 5,700-mark at 5,693.05, the level not seen since 26 November 2012.
Rs POSTS 2ND BIGGEST FALL IN 2013, PLUNGES 50P AGAINST $ TO 54.36
Registering its second biggest fall in 2013, the rupee lost a staggering 50 paise to hit a one-week low of 54.36 due to heavy capital outflows as Budget failed to cheer investor sentiment.
Month-end dollar demand from importers, mainly oil companies, also hit the domestic currency, amid a steep fall in local equities, forex dealers said.
Previously, it had plunged by 57 paise, or 1.05 per cent on January 4, 2013.
'Government proposing about Rs 17,000 crore higher net borrowing target in the Budget, which was more than street expectations, hit market sentiment to a great extent. This in turn hit the rupee. Especially, banks stocks were badly hit on concerns of tighter liquidity situation,' said Mohan Shenoy, Head (Treasury) at Kotak Mahindra Bank.
Profit-booking on the last day of the expiry of February also weighed on the market.
Finance Minister P Chidambaram presenting its eighth annual budget in Parliament raised surcharge on domestic companies to 10 pct from 5 pct whose income exceeds Rs 10 cr and also increased surcharge on dividend distribution tax as the same rate for FY 2013-14, which mainly affected the sentiment, a broker said.
Index heavyweight ITC, however, shrugged off from the market sell-off despit raising excise duty on cigarettes to 18 pct while securities transactions tax (STT) was reduced on equity futures and mutual funds, which could not able to help to stem the downfall.
The Bombay Stock Exchange 30-share gauge resumed higher and touched a high of 19,332.28, up by almost 170 points. But, when the budget proposals filtered in, it fell back sharply to settle at 18,861.54, a net loss of 290.87 points or 1.52 pct.
Last time, it had closed at 18,842.08 on 27 November 2012.
The 50-issue CNX Nifty of the NSE also plunged by 103.85 points or 1.79 pct to end below 5,700-mark at 5,693.05, the level not seen since 26 November 2012.
Rs POSTS 2ND BIGGEST FALL IN 2013, PLUNGES 50P AGAINST $ TO 54.36
Registering its second biggest fall in 2013, the rupee lost a staggering 50 paise to hit a one-week low of 54.36 due to heavy capital outflows as Budget failed to cheer investor sentiment.
Month-end dollar demand from importers, mainly oil companies, also hit the domestic currency, amid a steep fall in local equities, forex dealers said.
Previously, it had plunged by 57 paise, or 1.05 per cent on January 4, 2013.
'Government proposing about Rs 17,000 crore higher net borrowing target in the Budget, which was more than street expectations, hit market sentiment to a great extent. This in turn hit the rupee. Especially, banks stocks were badly hit on concerns of tighter liquidity situation,' said Mohan Shenoy, Head (Treasury) at Kotak Mahindra Bank.