Market falls for the fifth week running. Sensex below 19000.
Stock market continued to fall for the fifth week by slipping 398 points to close below 19,000 level after three months due to sustained selling pressure as the government slapped more taxes on companies as well as super rich and offered little concessions for large investors in the Union Budget.
Confusion over the Tax Residency Certificate (TRC) announced by the Finance Minister on the budget day, which created fear among the foreign investors, also weighed on the market sentiments.
However, the Finance Ministry on Friday sought to assure worried investors saying that their concerns on TRC for claiming treaty benefits would be “suitably addressed” during discussion on Finance Bill in Parliament.
Rail Budget also failed to inspire investors who were already rattled by fears of worsening EU debt crisis following poll stalemate in Italy.
Profit-booking on the expiry of February series on Thursday also weighed on the market, traders said.
Realty, PSU, Refinery, Metal, Power, Capital Goods and Healthcare sectors declined sharply on profit-booking, while Consumer Durable, IT and Tech sectors firmed up on good buying enquiries.
Small-cap and Mid-cap shares also declined sharply by 5.63 per cent and 4.36 per cent, respectively, on panic selling triggered by speculation that pledged holdings were being sold.
The BSE benchmark Sensex resumed higher at 19,365.33 and moved in a wide range of 19,411.18 and 18,793.97 before ending the week at 18,918.52, a net loss of 398.49 points or 2.06 per cent. It has lost 1,185.01 points or 5.89 per cent in five weeks.
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