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HindustanTimes Fri,11 Jul 2014

Sensex tanks 317 points to 3-month low

PTI  Mumbai, February 26, 2013
First Published: 09:41 IST(26/2/2013) | Last Updated: 22:25 IST(26/2/2013)

The Sensex on Tuesday widened early losses to end 317 points, or 1.6%, down at a 3-month low of 19,015, wiping out over Rs. 1 lakh crore in investor wealth as Rail Budget failed to inspire investors, already rattled by fears of a worsening EU debt crisis following poll stalemate in Italy.

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The Nifty also closed down 93 points, or 1.6%, at 5,761.

Concerns about a populist budget ahead of elections also hit sentiments, while a steep 216-point fall on Wall Street on Monday on concerns over Italian elections and looming spending cuts in the US added to the selling pressure.

On the domestic front, analysts said investors fear subsidy measures would challenge the government's fiscal discipline. "There is a concern that the food security bill will worsen the fiscal deficit," said Jagannathan Thunuguntla, research head, SMC Capital. 

"Today's budget has been more disappointing from capital good stocks perspective," said Daljeet S Kohli, head of research, India Nivesh.


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