Post Budget blues: Sensex slides 248 points in early trade; recovers later

WION Web Team Dalal Street, Mumbai Jul 09, 2019, 09.38 AM(IST)

File photo. Photograph:( Zee News Network )

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Punjab National Bank stocks had fallen over eight per cent on Monday after the bank reported a borrowing fraud

A day after a huge crash on Monday, the BSE Sensex extended its previous day's losses in early trade on Tuesday opening over 248 points down. It, however, recovered lost ground to remain 102 points down.

NSE Nifty was 71.28 points down as the markets continued to reel under post Budget stress.

On Tuesday morning, Titan shares plunged nine per cent with UPL, HDFC, Bajaj Finance and Bajaj Finserv trading in the red.

The Sensex had plunged 900 points on Monday at one point to close at 38,720 points, the Nifty too dived 252 points to close at 11,558.60. The markets were hit mainly due to Union Budget proposal which failed to announce measures to boost the auto sector including proposal to increase the minimum public shareholding in listed companies to 35 per cent from 25 per cent, threatening a wave of new issuance.

Punjab National Bank (PNB) stocks had fallen over eight per cent on Monday after the bank reported a borrowing fraud of Rs 3,800 crore in Bhushan Power & Steel Ltd's account to the Reserve Bank of India (RBI).

The selloff was widespread with 46 of the 50 stocks in the Nifty 50 index ending up in the red.

The auto index had tumbled to its lowest in over three years and settled 3.26 per cent down in Monday's close. Hero MotoCorp Ltd fell as much as 6.06 per cent to its lowest since September 2015, while Maruti Suzuki India closed at its lowest in over two years.