Poor fiscal deficit data drags Sensex down by 453 pts

RSTV Bureau

sensex-down-400x265Indian markets tanked on Thursday on account of growing fiscal deficit concerns. Sensex suffered its biggest single-day fall in the last one year plummeting over 453 points to close at 33,149.35. Nifty too finished below the 10,300-mark falling 134.75 points to close at 10.226.55.

The data revealed India’s fiscal deficit at the end of October hit 96.1 per cent of the budget estimate for 2017-18. This was mainly due to lower revenue realisation and rise in expenditure.

In absolute terms, the fiscal deficit – the difference between expenditure and revenue – was ₹ 5.25 lakh crore during April-October of 2017-18, revealed Controller General of Accounts (CGA) data.

Investors also kept their portfolios at a low ebb ahead of the second quarter GDP numbers. A weak trend at other Asian markets also weighed on the investor sentiment, brokers said.

“Market slid and rupee depreciated as widened fiscal deficit concerns and expectation of extension in oil production cut from OPEC influenced investors to offload funds from the market,” said Vinod Nair, Head of Research, Geojit Financial Services.

The rupee slipped 31 paise to 64.62 (intra-day) against the dollar at the forex market.

Kotak Bank emerged as the worst performer among Sensex constituents by plunging 2.63 per cent, followed by SBI Bank (2.54 per cent). Other

Other laggards included Reliance Industries, Axis Bank, Wipro, Tata Steel, Lupin, M&M, HDFC, Sun Pharma, Cipla, Power Grid, ITC, Adani Ports, TCS, ONGC, Infosys and Maruti Suzuki.

Dr Reddy’s and NTPC were the only gainers, rising up to 0.45 per cent.

(With inputs from agencies)