Disappointment from the interim budget and weak global stocks pulled the market sharply lower for the second day in a row. The BSE Sensex fell 263.77 points, to 9,041.68. The Sensex opened 92.05 points lower at 9,213.40, which was also the day's high so far. The Nifty dropped 71.85 points, to 2776.65. The market breadth, indicating the overall health of the market, was weak on BSE with 1707 shares declining as compared with 695 that rose. Tata Steel slumped 6.98%.
Hindalco Industries fell 5.19%. Hindalco proposes to use its share premium reserves to write off expenses incurred by the company on its international acquisition and domestic expansion.
Reliance Industries fell 4.17%. The stock fell on profit booking as the government did not re-introduce an anticipated seven-year income-tax holiday for natural gas producers in the interim budget.
Mahindra & Mahindra slipped 5.10%. DLF was down 5.29%. Facing acute liquidity crunch and poor buyer sentiments, DLF was recently reported to have stopped work on two of its biggest mid-income housing projects.
Reliance Communication slipped 4.73%. Promoter company AAA Communication, has pledged 27.23 crore shares, representing 13.2% of its equity capital.
Tata Power Company (down 3.83%), HDFC (down 4.87%), Sterlite Industries (down 3.45%), Maruti Suzuki (down 3.64%), and Infosys Technologies (down 3.48%), were the other major Sensex stocks that declined.
Ranbaxy Laboratories declined after a firm start. The stock fell 0.17% to Rs 204.90, off day's high of 209.90. ITC was the only gainer in the Sensex, rising 0.25%.
Multiplexes operator Cinemax India slumped 8.33% to Rs 34.65 after the company said its promoters have pledged more than 1.14 crore shares or 41% stake in the company.
Bombay Dyeing & Manufacturing Company lost nearly 3.53% to Rs 146 after the company said its promoters have pledged more than 49.72 lakh shares or 12.88% stake in the company.