Markets snap winning run on public float proposal

Mumbai: Snapping their four-session rising streak, benchmark equity indices closed with sharp losses on Friday after the Budget proposal to raise public shareholding threshold fanned fears of oversupply of new papers in an already overbought market.

After touching the 40,000-mark in morning trade, the BSE Sensex turned choppy after Finance Minister Nirmala Sitharaman rose to present her maiden Budget.

The 30-share gauge finally finished 394.67 points, or 0.99 per cent, lower at 39,513.39. On similar lines, the broader NSE Nifty sank 135.60 points or 1.14 per cent, to 11,811.15.

As many as 1,174 listed firms, including giants like TCS, Wipro and DMart, will have to off-load promoter stakes worth about Rs 3.87 lakh crore, a Centrum Broking report said.

Many PSUs have not been able to meet even the 25 per cent public shareholding norm till now, while there is already a lack of appetite for non-bluechip companies, traders said.

Sectorally, BSE metal, realty, power, auto, IT, basic materials, utilities, oil and gas, industrials, energy and capital goods indices plunged up to 3.85 per cent. FMCG, bankex and telecom gained up to 0.18 per cent.

Broader BSE midcap and smallcap indices too cracked up to 1.39 per cent. The rupee, meanwhile, witnessed a sharp recovery to trade at 68.52 against the US dollar intra-day.