Budget Impact on Stock Market: Sensex Slips 300 pts, Nifty Near 10,600

Budget Impact

Story highlights

  • Both Sensex and Nifty fell sharply today extending Friday’s losses
  • The latest selloff in global markets was triggered by Friday’s US jobs data

New Delhi: The Sensex and Nifty had slumped more than 2 percent on Friday, posting their biggest fall in nearly 15 months, as the long-term capital gains tax on equity investments, announced in Budget 2018, dampened sentiment.

As per reports, Both Sensex and Nifty fell sharply today, extending Friday’s losses, amid a selloff in global markets. Asian markets were sharply lower amid speculation that global central banks might be forced to tighten policy more aggressively. At day’s low, the Sensex fell nearly 550 points to 34,520 while the Nifty slumped below 10,600.

The latest selloff in global markets was triggered by Friday’s US jobs data which showed wages growing at their fastest pace in more than eight-and-a-half years and fuelling inflation expectations.

Although, markets recovered a bit in late morning trade. At 10:52 am, the BSE Sensex was trading 332 points lower at 34,734 and the NSE Nifty was down 98 points at 10,662.

On Friday, the Dow fell 2.54 percent, the S&P 500 2.12 percent and the Nasdaq 1.96 percent. It was the Dow’s biggest daily percentage loss in 20 months and the largest point fall since December 2008.

According to a senior economist at Kotak Institutional Equities Suvodeep Rakshit, we expect the RBI to remain on a pause in this policy. However, the tone will likely be more hawkish with a probability of rate hikes in FY2019 increasing.

Also Read: Mukul Sangma thanks PM for introducing Meghalaya Govt’s Health Scheme in the Budget

Earlier, on Monday, Asian markets fell the most in over a year with MSCI’s broadest index of Asia-Pacific shares outside Japan shed 1.9 percent in the largest daily drop since late 2016. Japan’s Nikkei sank 2.3 percent, while Australia’s main index lost 1.3 percent and Chinese blue chips slid 0.7 percent.

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