Stock markets worried, Sensex nosedives

Mumbai: The stock markets reacted negatively to Yashwant Sinhas budget proposals: share values nosedived and a number of active scrips hit the lower circuit breakers.

While the 30-share benchmark Sensex plunged 4 per cent, or 143.35 points, to close at 3562.31, on the National Stock Exchange, the S&P CNX Nifty index closed lower by 46.90 points (3.91 per cent) at 1142.30.

Stocks across the board nosedived with IT, PSU, steel and cement scrips bearing the brunt. The selling was also due to the expiry of the derivatives contract for February 2002 and the ongoing communal tension in Gujarat.

Most of the leading counters were hammered down as the finance minister announced the tax proposals. In just a few minutes, the Sensex was down by 168 points after some buying was seen at these levels.

Among the major losers were Satyam Computers, Infosys, SBI, MTNL, ICICI, Digital Global, Bharti and ACC. But PSU stocks did not suffer as heavy a hammering as others, indicating market interest in them.