The Union Budget 2019 did not go down well with market participants, as domestic equity benchmark BSE Sensex plummeted nearly 250 points in early trade Tuesday (July 9), marking the third straight session of loss after the budget proposal.
Both Sensex and Nifty fell as Dalal Street continued to react negatively to the Budget proposal.
The surcharge on foreign portfolio investors, tax on buybacks and the proposal to increase minimum public shareholding of listed firms to 35 per cent have not been received well by the investor community, reports news agency IANS.
The Sensex was trading 209.24 points lower at 38,511.33 at 9.16 am today. It opened at 38,754.47, from its Monday's close of 38,720.57, when the markets logged record fall and the Sensex ended 792 points lower.
The Nifty declined by 77.35 points or 0.67 per cent to 11,481.25.
All the sectoral indices were trading in the red apart from metal and pharma stocks. Shares of companies including HDFC twins, Asian Paints, Kotak Bank, HUL, Bajaj Finance and Axis Bank fell up to 2.19 per cent. While, Yes Bank, PowerGrid, Sun Pharma, NTPC, L&T, RIL and Vedanta were among the gainers, rising up to 2.90 per cent.
During the early trade, the Tata Consultancy Services was trading 1.52 per cent lower. However, the firm will announce its quarterly result today. Speaking to news agency IANS Rusmik Oza, Head of Research, Kotak Securities said, "Equity markets were expecting some kind of fiscal stimulus from the budget but there has been a big disappointment."