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Sensex logs heaviest fall in 7 months as Budget fails to deliver


Mumbai, Jul 8 (IANS) : Disappointment over the Budget proposals and muted global markets led the Sensex to log the heaviest fall in seven months on Monday. Both the key equity indices -- Sensex and Nifty -- fell over 2 per cent.

Global markets traded lower after US reported strong job data, which faded hopes of an aggressive rate cut by the Federal Reserve.

"Equity markets were expecting some kind of fiscal stimulus from the budget but there has been a big disappointment," said Rusmik Oza, Head of Research, Kotak Securities.

Oza added that housing was the only segment to get some kind of a stimulus and that the budget had been taken positively by the bond market due to curtailment of the Fiscal Deficit.

The 30-scrip Sensex closed 792.82 points or 2.01 per cent lower at 38,720.57 and the broader Nifty50 declined by 252.55 points or 2.14 per cent to 11,558.60.

Investor sentiment also took a beating as the second-largest state bank, Punjab National Bank's (PNB) on Saturday admitted that it had been defrauded of Rs 3,805.15 crore by Bhushan Power and Steel Ltd (BPSL).

This is the second time in 12 months that the state-run bank has been duped. Last year, jeweller Nirav Modi and his uncle Mehul Choksi had defrauded it of Rs 14,000 crore in one of the biggest bank scams in the country.

PNB declined by 11.25 per cent to Rs 76.30 apiece dragging the PSU Bank index, which closed 5.90 per cent lower.

Heavy selling was seen in PSU banks such as Bank of India, Union Bank of India and Canara Bank, which were trading over 8 to 10 per cent lower.

Canara Bank, Syndicate Bank, Indian Bank and Bank of Baroda declined in the range of 5 to 8 per cent.

Auto companies were also major contributors to the fall. Hero MotoCorp Limited and Maruti Suzuki India declined over 4 per cent, the most among the 15 constituent companies on the NSE Auto index.

 

 

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Comment on this article

  • SBM, Mangalore

    Tue, Jul 9 2019

    The mandatory expenditure report of the previous budget was not at all disclosed. No mention about startups. No mention about job creation. No mention about budget for existing water problems.
    YEah.."har ghar jal" scheme was mentioned..but from where are you going to get the JAL? Underground water?

    DisAgree [1] Agree [5] Reply Report Abuse

  • Narendra Prabhu k, Bengaluru

    Tue, Jul 9 2019

    Good time to pick blue chips !
    (warnimg - markets are not for the faint hearted)

    DisAgree [1] Agree [6] Reply Report Abuse

  • very, sis

    Tue, Jul 9 2019

    desperately waiting for some negative news !!!! don't waste so much energy so early. wait will be very long!! 5 long years. keep all these news handy... it may be useful for RAGA for another fake news campaign like rafale. if sensex logs 1000 points gain then people will complain that industries are favoured !! keep up the negative energy ... you need for 5 long years..

    DisAgree [5] Agree [6] Reply Report Abuse

  • Sanjeev Kamath, Udupi / Seattle

    Tue, Jul 9 2019

    It is amusing to read some of the unrelated and digressing comments below on stock fall, which unfortunately the learned Adv. Chidambaram too missed!!

    The truth is that the correction in global peers after diminishing hope for interest rate cut by Federal Reserve due to strong US jobs data and the latest scam detected at Punjab National Bank dampened market sentiments. Negative news in terms of cut in vehicle production announced by Maruti, deficit monsoons and reduction in area sown in Kharif crops, in an environment of continuing farm distress and weak demand for consumer products added fuel.

    However, federally beneficial budget reforms such as surcharge on foreign portfolio investors, 20% tax on buyback of securities and proposal to increase the public float by 10%, unfortunately disappointed the investors.

    This knee jerk reaction is expected to be corrected within a week.

    Sadly, 793 points decline of Sensex became a major issue and not breaching the 40,000 mark on 03 June 2019 and nearly staying there till recently, making millions millionaires!!

    Nobody remembers SIMILAR REPEATED hammerings of the Sensex on 21 January, 03 March, 17 March, 10 October and 17 October of 2008 during the UPA regime under the stewardship of Dr Manmohan Singh! As desired by UPA, millions had become paupers then!

    DisAgree [2] Agree [3] Reply Report Abuse

  • Save My India, India.

    Tue, Jul 9 2019

    Thanks to Seetamma's useless Budget..!!!

    DisAgree [1] Agree [8] Reply Report Abuse

  • Vijay, Mangalore

    Mon, Jul 8 2019

    Worse is ahead. Nothing like booming economy nor any big changes will happen in 5years. Last 5 years were only a dream next 5 will be a nightmare. Auto sales down, gdp down, debt market turmoil, lending is reduced, daily newspaper reports atleast 5-10 npa being auction, infrastructure projects unsold Rs 2lac crore n so on.

    DisAgree Agree [7] Reply Report Abuse

  • Valerian Menezes, Kota

    Mon, Jul 8 2019

    Actually this deep fall in the sensex describes the quality of the budget. It is a pity we had such dull budged after having a govt with thumping majority. Seems like the govt is unable to rise up to the expectations of the people.

    DisAgree Agree [6] Reply Report Abuse

  • Vishal, Mangalore

    Mon, Jul 8 2019

    This was only waiting to happen. The markets were somehow holding on despite knowing that the economy was on a downward path. They had pinned a lot of hopes on the budget. A lot was expected by way of announcements to boost the economy, to create jobs and to improve the sagging business. Nothing of the sort came about and the result is there for all to see. This government has played ducks and drakes of a burgeoning economy it inherited in 2014. The Narendra Modi government has dealt one blow after another from which the country is finding it difficult to recover. To make matters worse, they have selected Nirmala who appears to be having absolutely no idea of what she is doing. It is a case of the blind leading the blind.

    DisAgree Agree [4] Reply Report Abuse

  • Vinay, Mangalore

    Mon, Jul 8 2019

    Time to re define the GDP norms which will show growth. Govt working on it

    DisAgree [9] Agree [5] Reply Report Abuse

  • David Pais, Mangalore

    Mon, Jul 8 2019

    which gdp????????? cows gdp?????????

    DisAgree Agree [8] Reply Report Abuse

  • David Pais, Mangalore

    Mon, Jul 8 2019

    comments from bhaktas r missing in dis news.

    DisAgree [5] Agree [27] Reply Report Abuse

  • Jennifer, Mangalore

    Mon, Jul 8 2019

    Bhakths are engaged in guarding the resort where Karnataka MLAs are kept under house-arrest.

    DisAgree [4] Agree [25] Reply Report Abuse

  • Evans C. Sumitra, Udupi/ New York, USA.

    Mon, Jul 8 2019

    It was no surprise that Sensex and Nifty will crash down soon after the budget for the fiscal year 2019-20 was delivered. This is a big blow to the poor citizens who voted for a better life. Worst is yet to come.

    DisAgree [7] Agree [32] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Jul 8 2019

    Do we really need a Chartered Accountant as Railway Minister.
    I wonder what is the qualification of our Finance Minister ...

    DisAgree [4] Agree [36] Reply Report Abuse

  • Evans C. Sumitra, Udupi/ New York, USA.

    Mon, Jul 8 2019

    Jossey Saldanha, Mumbai, This happens only in India and I fully agree with your sensible comments.

    DisAgree [4] Agree [23] Reply Report Abuse

  • Jennifer, Mangalore

    Mon, Jul 8 2019

    Anybody remembering Nehru ? 70 years' rule ??

    DisAgree [3] Agree [29] Reply Report Abuse

  • Sunil K, Mangalore

    Mon, Jul 8 2019

    Stupid voters to blame for bringing back a stupid government.

    DisAgree [4] Agree [42] Reply Report Abuse

  • Vikas, Belman

    Mon, Jul 8 2019

    Not the voters alone, the well synchronised EVMs are said to be helped tremendous mandate.

    The Sensex nosedive is the perfect proof of public’s displeasure over the nevgovt policies.

    DisAgree [3] Agree [35] Reply Report Abuse

  • Evans C. Sumitra, Udupi/ New York, USA.

    Mon, Jul 8 2019

    Sunil K. Mangalore, Yours is the most sensible comment which I hope the poor innocent people who voted to the wrong party will understand.

    DisAgree [3] Agree [27] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Mon, Jul 8 2019

    I want to write here, only on one thing told by our FM. "India is a country that is non complaint in income tax, because out of 130 cr population, only 3.7 cr are filing ITRs." Following reply is given by a chartered accountancy firm to FM.

    "We have 82 crore voters, others are below 18. 75% are agriculturists, who, the govt has exempted from income tax. that is 61.5 cr. These exempted people which includes political colleagues of govt, own cars and bungalows. Balance remains 20.5 crores. out of which 24% are BPL. That means 15 cr people, who are non agriculturists and non BPL. From this, senior citizens, non working wives, unemployed youth are about 75%. A typical Indian family only has one earning member and 4/5 are dependent on him.

    Balance (15-11.25) = 3.75 cr. are earning class, which can file ITRs and they are already filing it."

    Although, it is the view of CAs. there are very rich people who have BPL cards. Govt has to catch them. CAs think, since govt has given BPL cards, they may be genuine, which is not.

    DisAgree [1] Agree [27] Reply Report Abuse

  • AD, Mangalore

    Mon, Jul 8 2019

    Nirmala Sitharaman looks more and more incompetent.
    As commerce minister she was smart and in control. As defence minister she was lost. And as finance minister she seems incompetent.

    DisAgree Agree [30] Reply Report Abuse

  • Eminef, Mangalore

    Mon, Jul 8 2019

    Honeymoon is over. Now the reality will hit your face. Too late to do anything. How long can you spread fake news, eventually the truth has to show up. Unfortunately, the poor will have to face the brunt.

    DisAgree Agree [46] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Jul 8 2019

    If we don't take corrective measures now Pakistan & Somalia will go ahead of India ...

    DisAgree [4] Agree [55] Reply Report Abuse

  • Jennifer, Mangalore

    Mon, Jul 8 2019

    Exactly !

    The rich will shift to Antigua, UAE or KSA and all those left in India will be like those living in Somalia, Pak/Afghanistan.

    DisAgree [3] Agree [40] Reply Report Abuse

  • Chowkidar Chor Hai!, Mangalore

    Mon, Jul 8 2019

    Jossey Saldanha, Mumbai — just give us 5 more years after these 5 years 😂😂😂

    DisAgree [5] Agree [23] Reply Report Abuse

  • SmR, Karkala

    Mon, Jul 8 2019

    After PM Modi's flop show of 'Demonetisation', the $5 Trillion economies before take-off crash-landed.
    Jai Hind

    DisAgree [3] Agree [43] Reply Report Abuse

  • G R PRABHUJI, Mangalore

    Mon, Jul 8 2019

    Common citizens are struggling to get a glass of water, but Modiji thinking about going to moon.

    DisAgree [3] Agree [42] Reply Report Abuse

  • Jennifer, Mangalore

    Mon, Jul 8 2019

    Some countries recently announced life-time residency upon investing a specific figure. Had they by-chance had any clue that this was coming ? Because thousands of Indians have already jumped the ship and if what is happening now in the market continues, I'm sure further outflow will not delay taking advantage of the security and standard of life those countries offer.

    DisAgree Agree [27] Reply Report Abuse

  • William, Mangalore

    Mon, Jul 8 2019

    Manipulated EVMs and blind bhakts to blame.

    DisAgree [1] Agree [46] Reply Report Abuse

  • Evans Sumitra, Udupi/ New York, USA.

    Mon, Jul 8 2019

    William, Mangalore, There is no doubt about it.

    DisAgree Agree [29] Reply Report Abuse

  • Chowkidar Chor Hai!, Mangalore

    Mon, Jul 8 2019

    Ohm NaMo NaMo NoMo — Ganfat Rai jai ho!!!

    DisAgree Agree [29] Reply Report Abuse

  • Samyr, Dubai

    Mon, Jul 8 2019

    Sensex, NIFTY may fall further and the budget has fuelled it.
    Domino effect to watch ahead.

    DisAgree Agree [29] Reply Report Abuse

  • Mangalurian, Mangaluru

    Mon, Jul 8 2019

    Some wise people have said it over the last two hundred years.

    Economics and politics are two different arts.

    But most Indians never seem to get it.

    They still buy the dreams from clever manipulators.

    The Gujju-bhai and his team are busy putting a topi on everyone's head.

    DisAgree Agree [41] Reply Report Abuse

  • Jennifer, Mangalore

    Mon, Jul 8 2019

    Good that Modi govt got re-elected to drown in the black hole it dug up in their first term. God saved any other govt from the maze of reviving the economy !

    DisAgree Agree [36] Reply Report Abuse

  • Jennifer, Mangalore

    Mon, Jul 8 2019

    Bhaiyon behno.. Aap ghabraayiye matth..... agli paanch saal nafaa nuksaan sabb mein dekhoonga.

    Aapne mujhe vote diyaa, bass aapka kaam kathm..

    DisAgree [1] Agree [44] Reply Report Abuse

  • David Pais, Mangalore

    Mon, Jul 8 2019

    no fdi flown 2 india after record breaking site seeing tours 2 foreign countries by da chaiwala. da chemotherapy 2 da collapsed economy couldn't recover. bhaktas r chanting hail, hail, nirmala's a-nirmala budget. hope 2022 budget will b having few soothing sops so dat da burnol bhaktas will chant again chowkidar, chowkidar... chor hai. hAhAhAhAhAhAhAhAhA.....

    DisAgree [1] Agree [36] Reply Report Abuse

  • Chetan, Mangalore

    Mon, Jul 8 2019

    We are heading back to the stone age at high speed. The mess this government has created will make a whole generation suffer.

    DisAgree [2] Agree [61] Reply Report Abuse

  • David Pais, Mangalore

    Mon, Jul 8 2019

    no recovery is seen in da collapsed economy.

    DisAgree [6] Agree [57] Reply Report Abuse

  • James Philip Dsa, Belman

    Mon, Jul 8 2019

    The most desaterous budget. Unemployment will rise sky high in the coming 5 years

    DisAgree [6] Agree [68] Reply Report Abuse

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Title : Sensex logs heaviest fall in 7 months as Budget fails to deliver


 
 
 
 

 
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