Mumbai: It was disastrous day for the markets on the Budget day wherein it opened on extremely bearish note on the back of negative cues from global markets.
Markets were already on its downtrend for last two weak on account of hike in interest rates and untolerable inflationary pressure.
It traded extremely subdued throughout the day amidst volatility but lost sharply in late trade and ended in deep red. It was the biggest fall since may 18, 2006.
IT, metal, banking and auto stocks were the hardest hit sectors in today's trade. All the index pivotals closed in red and the markets breadth was extremely negative.
The benchmark Sensex crashed 541 points to end below the 13,000-point mark in highly volatile trading on selling by funds and investors.
After plunging 678 points, the Sensex remained volatile and ended with a hefty loss of 540.74 points, or 4.01 per cent, at 12,938.09. It came below 13,000 points level and moved between 13,298.52 and 12,800.91 during the day.
In similar fashion, the National Stock Exchange index Nifty dropped by 148.60 points, or 3.82 per cent at 3,745.30. It moved between 3,893.40 and 3,674.85 points.
Major negative factors for the market were the budgetary proposals including a hike in dividend distribution tax, a 25 per cent dividend distribution tax for mutual funds and liquid mutual funds, imposition of tax on employees stock option plan (ESOP) and no change in the corporate tax.
Selling pressure gathered momentum as there was no concessions in corporate tax and securities transaction tax, brokers said.
(With Inputs from PTI)
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