Sensex suffers biggest single-day loss of 2019

Market benchmark BSE Sensex plummeted by 793 points or 2 per cent, its biggest single-day loss this year so far, due to heavy selling in financial, auto and oil stocks as investors turned edgy after the twin impact of budget tax proposals and a global selloff.

The 30-share Sensex tanked 907 points in the intra-day trade before settling at 38,720.57 points, showing a sharp loss of 792.82 points or 2.01 per cent. The broader Nifty of the NSE tanked 252.55 points, or 2.14 per cent, to close at 11,558.60 points.

After the budget presentation on Friday, the market capitalisation of BSE-listed firms dived Rs.5,61,772.64 crore. Sensex had dropped 394.67 points on Friday.

The Union Budget proposal to raise the public shareholding threshold to 35 per cent from the current 25 per cent and higher tax incidence for foreign portfolio investors and high networth individuals continued to spook domestic investors, traders said. Other tax proposals like charge on share buyback also piled on the investor sentiment.

A heavy selloff in global markets after the positive US job data hit expectations of a rate cut by the Federal Reserve weighed on the investors. Asian markets ended significantly lower with the Shanghai Composite Index ending down by 2.58 per cent, Hang Seng by 1.54 per cent, Nikkei by 0.98 per cent and Kospi 2.20 per cent. Equities in Europe were also trading lower in their respective early sessions.

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