Shares of insurance companies came under heavy selling pressure on Saturday, tumbling up to 13 per cent, after income tax changes announced in the Budget came with riders regarding exemptions which disappointed the markets.
“Budget was below par considering that market had very high expectations from the Government. Income tax changes announced has come with riders of giving up exemptions which disappointed the markets, with insurance sector being impacted the most,” said Vinod Nair, Head of Research, Geojit Financial Services.
Shares of Max Financial Services plummeted 12.78 per cent, ICICI Prudential Life Insurance Company plunged 10.93 per cent, SBI Life Insurance Company tumbled 10.02 per cent, The New India Assurance Company 7.16 per cent and HDFC Life Insurance Company 6.06 per cent on the BSE.