No Budget cheer: Markets close down, in 2017 markets ended over 400 points up
The BSE Sensex crashed over 300 points in the afternoon as finance minister Jaitley finished his budget presentation on Thursday.
The Nifty too sank below the 11,000 mark as Jaitley was unveiling the budget.
Sensex fell 58 points to close at 35,906.66 while Nifty slipped 10.80 points end at 11,016.90 on Budget day.
The 30-share index had plunged over 460 points in afternoon trade after finance minister Arun Jaitley had announced long-term capital gains tax of 10 per cent on stock market gains exceeding Rs 1 lakh.
The markets had opened slightly up in expectation of strong budget by the finance minister on Thursday morning. The BSE Sensex was up 0.45 per cent at 36,127.41 and the broader NSE Nifty was up 0.39 per cent at 11,070.80
The performance of the market is in stark contrast to last year when the Sensex closed 486 points up at 28,142. The Nifty closed 8,716.40 last year after touching the day's high of 8,722.40.
The market last year was buoyed by Jaitley's thrust on fiscal discipline and FPI taxation. Jaitley's decision to infuse Rs 10,000 crore in the public sector had also cheered the markets . The markets had closed at a 3-month high in 2017.
This time, however, market sentiment was hit after the fiscal deficit target for 2017-18 was raised to 3.5 per cent of GDP as against 3.2 per cent earlier.
The Sensex had crashed to 35,590.17, falling 374.85 points, or 1.04 per cent during the day.