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Investors lose Rs 2.54 lakh cr on Budget day

July 06, 2009 20:02 IST
Investors lost over Rs 2.54 lakh crore on Monday as the market gave a thumbs-down to the Union Budget 2009-10, which failed to provide a concrete road map for reducing the burgeoning fiscal deficit.

The total investors' wealth, measured in terms of combined market capitalisation of all the listed companies, declined by over Rs 2,54,153 crore (Rs 2.54 trillion) at the end of trade to Rs 46,23,304.34 crore (Rs 46.23 trillion).

The total market capitalisation of all listed entities was at Rs 48,77,457.38 crore (Rs 48.77 trillion) at the end of Friday last.

Analysts believe the Budget fell short of high market expectations as it did not make clear how it would push forward with the divestment plans.

The government said the fiscal deficit for the financial year ending March 2010 would increase to 6.8 per cent of GDP from 6.2 per cent in the previous year.

The 30-share Bombay Stock Exchange Sensex nosedived by 869.65 points at 14,043.40, after witnessing a low of 13,959, down 952 points.

Further, the 30-Sensex companies, which account for over 46 per cent of the total market capitalisation of all the companies, saw their combined market valuation declined by over Rs 1.23 lakh crore.

The combined market capitalisation of the 30-blue chip stocks fell to Rs 21,13,970.97 crore (Rs 21.13 trillion) today from Rs 22,37,570.19 crore (Rs 22.37 trillion) at the end of trade on Friday.

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