Sensex, Nifty slump over 2pc

MUMBAI, July 8 (Reuters): The BSE Sensex and Nifty slumped more than 2 per cent on Tuesday, marking their biggest single-day fall in over 10 months and retreating from record highs hit earlier in the session, after the railway budget raised worries the government would slash spending.

The railways budget has revised up the plan outlay to 654.45 billion rupees for 2014/15, up 1.8 per cent compared with the interim budget's estimate of 643.05 billion rupees, but lower than market's expectations, traders said.

Analysts also said the plan in the railway budget to seek private funding for new projects did not provide enough details on how it would attract investors.