Tax worries roil indices ahead of Budget; Sensex down 5% from peak

YTD returns turn negative

Investors are having cold feet ahead of the Union Budget. Worries around an increase in taxation saw the benchmark indices correct for the fourth day in a row on Wednesday – the longest losing streak since September. The Sensex fell 1.94 per cent, or 937 points, to end at 47,409.93, the lowest since December 28. The Nifty ended at 13,967.5, down 271 points, or 1.91 per cent, reporting the sharpest fall since December 21.

Foreign portfolio investors (FPIs) sold shares worth Rs 1,688 crore on Wednesday, registering their third straight day of selling. After climbing to an intra-day high of