A morning walk down Dalal Street | Nifty can fall towards 200-day EMA if it breaks 11,470

Taxation jitters hit D-Street as higher taxation proposed for the foreign portfolio investors (FPIs) in the Budget 2019 dented sentiments. Additionally, the absence of any fiscal stimulus as well as 20 percent tax on buyback of shares done by companies resulted in a knee-jerk reaction on D-Street.

Finance Minister Nirmala Sitharaman said on Monday there was no need for any clarification on the additional tax burden that could apply to foreign portfolio investors due to higher surcharges introduced by her budget last week.

News of Rs 38 bn fraud at PNB, brought back memories of the Nirav Modi scam and raised fresh worries of more such skeletons in the closet, suggest experts. A production cut by India top automobile manufacturer, Maruti Suzuki raised fresh worries of a slowdown.

In terms of sectors, the S&P Public Sector lost nearly 4 percent, followed by the S&P Capital Goods index that was down 3.7 percent, and the S&P BSE Realty index that fell 3.5 percent. The Nifty Bank was down 871 points or 2.77 percent.