Sensex ends 193 points down on profit booking post Budget
19 Mar 2012
The BSE Sensex fell over 1% on the first day of week as it looked worried over rates cut in April post Budget considering high oil prices. Political uncertainties also added to the woes, after Prime Minister Manmohan Singh accepted Dinesh Trivedi's resignation as Railway Minister.
Both traders and investors squared off their positions that built up before the Budget as they believe it was realistic and retrospective but not reformist.
The 30-share BSE benchmark fell 192.83 points or 1.10%, to close at 17,273.37, weighed down by 24 stocks. Meanwhile, the 50-share NSE Nifty went down 60.85 points or 1.14% to 5,257.05, dragged down by capital goods, banks, technology, oil & gas and capital goods stocks.
The Sensex shed more than 400 points in two days. According to Vibhav Kapoor of IL&FS, a lot of people who bought in anticipation of the Budget are selling out right now and that is leading to this correction over the last two days.
"The Budget has probably put some doubts in the minds of investors as to whether you are going to have rate cut in April itself. So there is a possibility that the rate cuts might get a little bit delayed maybe by a month or two and that is also one reason why the markets have reacted negatively. A lot is going to depend upon the determination of the government to raise fuel prices. The market does recognise that it's a pretty difficult task given the political implications and the political situation," he reasoned.
At 14:53 hours IST: Sensex nosedives; ITC, M&M outperform, Atlas Cycle up 14%
