Budget Aftermath

Govt spending spree spooks market, Sensex tanks 5%

MUMBAI: The Bombay Stock Exchange benchmark Sensex tanked 700 points at noon on Monday even as Budget presentation by the Finance Minister, Mr Pranab Mukherjee continued in Parliament.

Market participants said Mr Mukherjee pegging fiscal deficit at a high of 6.8 per cent of GDP for 2009-10 is a cause of concern, triggering hectic sell-off. Fiscal deficit in the previous fiscal was 6.2 per cent of GDP. They further said markets fell drastically even though the Fringe Benefit Tax, seen as an irritant of corporate, has been abolished. The surcharge on personal income tax has also been abolished

At 12.45 pm, the Sensex tumbled 873 points at 14,239.80 with most of the heavy-weights recording losses. Sector-wise analysis shows Bankex was the worst bit followed by oil and gas and metal indices.

Similarly, the wide-based National Stock Exchange index Nifty tumbled 196.30 points at 4,227.95 at the same time.

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