Market benchmark Sensex plunged over 700 points on Saturday after the Union Budget projected widening of fiscal deficit for the current financial year.

The Sensex slumped as much as 708 points to hit an intraday low of 40,015.

Nifty 50 index followed suit and dropped 220 points to hit a low of 11,741.

Sensex was trading over 150 points higher ahead of the Budget presentation.

Presenting the Union Budget for 2020-21, Union finance minister Nirmala Sitharaman pegged the fiscal deficit at 3.8 per cent in the current fiscal, compared to the earlier target of 3.3 per cent of GDP.

In her second Budget presentation, the finance minister said certain government securities will be open for foreign investors.

She said the government plans to increase investment limit for FPIs in corporate bonds from 9 per cent to 15 per cent.

Top losers in the Sensex pack included L&T, Tata Steel, ONGC, PowerGrid, IndusInd Bank and SBI.

However, HUL, Bajaj Finance, Nestle, TCS and UltraTech Cement were trading higher.

The forex market remained closed for the weekend.