MUMBAI: The bourses went into a tailspin on Wednesday and the Sensex tanked 541 points to below 13,000-level as the Union budget proposals failed to soothe sentiments in a market reeling under huge selling pressure.
The Sensex crashed 678 points in the initial five minutes of trading, even before Finance Minister P. Chidambaram rose to present the budget, in line with the fall across major stock markets in the U.S. and Asia.
While the early losses were partly recovered in the afternoon trade, a fresh bout of selling was seen on the bourses soon after the Finance Minister announced tax proposals in the budget, which were termed as disappointing by industry.
The Sensex touched a low of 12800.91 but later recouped some losses. It ended at a four-month low of 12938.09 points, a net loss of 540.74 points, or 4.01 per cent, from Tuesday's close of 13478.83. The S&P CNX Nifty of the National Stock Exchange (NSE) also tumbled 148.60 points, or 3.82 per cent, to close at 3745.30 from 3893.90. Market breadth was highly negative and there were about four losers for every single winner.
Major global markets, including in the U.S. lost 3 to 5 per cent on the back of the biggest fall in the Chinese market in a decade.
The Shanghai Composite Index recovered by 3.9 per cent on Wednesday after falling by 8.8 per cent on Tuesday. But other Asian markets closed sharply lower for the second consecutive day. PTI