The markets extended losses to more than 4% at noon today as the budget failed to live up to expectations and on fears over a higher fiscal deficit in the existing fiscal.

Market players said Mukherjee pegging fiscal deficit at a high of 6.8% of GDP for the existing fiscal is a cause of worry, actuating hectic sell-off.

They added that the stock markets fell drastically even though the Fringe Benefit Tax, seen as an irritant of corporate, has been abolished.

Fiscal deficit in the previous fiscal was 6.2% of GDP.

At 1.00 p.m., the 30-share index Sensex lost 624.14 points at 14,288.91.

Similarly, the wide-based National Stock Exchange index Nifty tumbled 5.1%, at 4,197.80 at the same time.

The over breadth of the market was negative as it saw 1,515 declined as against 782 advancements.

The top losers in the 30-share index included Tata Steel lost 4.5% to Rs 417, Reliance Infrastructure plunged 4.20% to Rs 1,232, SBI declined more than 4% to Rs 1,732.

Hindalco, Jaiprakash Associates and Grasim were also down 3.5% each at Rs 81 and Rs 206 and Rs 2,325, respectively.