<b>Budget 2008: </b> Sensex drops 275pts

The Sensex is now down 275 points at 17,549.

The NSE Nifty is down 76 points at 5,209.

Bankings stocks have weakened following the FM's proposal to waive all loans for marginal and small farmers.

The government today proposed to waive agricultural loans given by scheduled commercial banks, regional rural banks and co-operative credit institutions to farmers up to March 31, 2007 and due for December 31, 2007.

ICICI Bank has plunged 3.5% to Rs 1,064. SBI has tumbled 2.3% to Rs 1,992, and HDFC Bank has shed 1.3% at Rs 1,452.

Tata Motors and Hindalco have dropped around 2.5% each to Rs 692 and Rs 199, respectively.

Bharti Airtel, Tata Steel and Wipro are down 2.3% each at Rs 825, Rs 805 and Rs 436, respectively.

Mahindra & Mahindra has moved up 1.5% to Rs 690, and ITC is up over 1% at Rs 204.

Out of 2,453 stocks traded so far, 1,220 have advanced, 1,157 have declined and 76 are unchanged.