Sensex ends below 29,000, down 256 points; SBI, ONGC drop 2 per cent

Mumbai: The market extended losses, falling 0.9 per cent on the first day of Budget week, dragged by banking & financials, FMCG and oil stocks. It was a second straight day loss for the market.

The 30-share BSE Sensex broke 29000 level, down 256.30 points to 28975.11 while the 50-share NSE Nifty closed below the 8800-mark, down 78.65 points at 8754.95.

Experts feel the market may not see major upside or downside during the week as most of the positives already discounted. "The market will be volatile over the next few days. We do not expect major changes on the tax front in the Budget while all positives that may come from Railway Budget are already priced in," says Sanjay Dutt of Quantum Securities.

The Budget session of the parliament kicked off on Monday after President Pranab Mukherjee highlighted the government's growth strategy in last 9 months in a joint session of both the houses.

PM Narendra Modi urged the opposition to allow a constructive debate on all issues. In stocks, index heavyweights took the big knock - Reliance Industries shed 2.5 percent followed by ITC with 1.5 per cent loss and HDFC with 1.8 decline. Among banks, State Bank of India and Axis Bank slipped 2 percent each while rivals ICICI Bank and HDFC Bank were down over 0.5 per cent.

ONGC, Tata Steel, HUL, Bajaj Auto and GAIL lost 1-2 percent. JSPL went down 1.6 percent and DLF dropped 3 per cent after the National Stock Exchange decided to exclude both stocks from the Nifty with effect from March 27 while Idea Cellular and Yes Bank will be included.

However, TCS, Larsen & Toubro, Mahindra & Mahindra, Sesa Sterlite and NTPC bucked the trend, up 0.5-1 percent. The broader markets too were under pressure as the BSE Midcap and Smallcap indices fell 0.84 percent and 0.3 percent, respectively.

About 1195 shares advanced while 1708 shares declined on the Bombay Stock Exchange. Meanwhile, the rupee closed lower at 62.32 a dollar, down 10 paise compared to Friday's close. On the global front, Nikkei closed at fresh 15-year high on Greek deal while in Europe, France's CAC and Germany's DAX gained 0.3 per cent while Britain's FTSE declined 0.25 per cent.