Sensex, Nifty falter as budget disappoints

MUMBAI (Reuters) - The Sensex and the Nifty fell on Thursday to three-month lows as state-run lenders declined after the government announced a higher-than-expected gross market borrowing target as part of its 2013/14 budget, raising concerns about liquidity in the banking system.

A government proposal to raise taxes on certain individuals and companies also raised concerns, while worries about double tax avoidance agreements also hit shares after the finance ministry said tax residency certificates were no longer sufficient to claim benefits

State Bank of India provisionally fell 5.08 percent.

The Sensex provisionally fell 1.17 percent, while the Nifty ended down 1.8 percent.

(Reporting by Abhishek Vishnoi; Editing by Sunil Nair)