Are the stock markets portending a disappointing Budget session? It seems like it, with the markets tanking over 1.5 per cent as Parliament reconvened on Tuesday.

The benchmark Sensex lost 378 points to close at 23,410.18 while the Nifty shed 125 points to finish the day at 7,109, surrendering all the ground it had gained in the last three sessions in a single day.

“With F&O expiry, the Rail Budget, the Economic Survey, the G20 Finance Ministers’ meet as well as the Union Budget lined up, investors obviously retracted into a risk-off mode, and the profit booking that ensued dragged prices sharply away from eight-day peaks,” said Anand James, Co-Head, Technical Research Desk, Geojit BNP Paribas Financial Services Ltd.

On the Nifty, Asian Paints (up 0.4 per cent) was the only gainer while all other index components closed in the red.

Big losers The sell-off was led by the Bank Nifty, which lost a massive 2.62 per cent to close at 14,008, with ICICI Bank coming close to its 52-week low of ₹188.85. Realty was the other big sectoral loser, closing 2.74 per cent down.

All other sectoral indices traded with losses of over one per cent. The broader markets fared just as badly, with the BSE MidCap and SmallCap indices losing 1.47 per cent and 1.25 per cent, respectively.

Foreign institutions sold net Indian equity of close to ₹290 crore on Tuesday while domestic institutions bought ₹258 crore net. Retail investors were also net buyers to the tune of ₹32.62 crore.

Volatility persisted, with the India Vix rising 13.40 per cent to close at 23.8375. A Moody’s Investors Service statement earlier in the day that India’s fiscal metrics are expected to remain weaker than its peers in the near-term even if the country keeps to the fiscal consolidation roadmap added to the unease in the markets.

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