Why did the Sensex hate this budget?
Manas Chakravarty, Mint’s Consulting Editor and Mark to Market columnist talks about why the Budget reacted negatively to the Budget.
He says the markets plunged because the investors were disappointed by an absence of sweeping reforms and pro-market measures. Also, the disinvestment figure of Rs1,120 crore was very low.
He futher added that the government had in fact missed a good opportunity to assure the markets of its road map for the next five years. “Although the government has tried it’s best to stimulate the economy, it has fallen short of expectations,” he said.
Indian shares extended losses to 5.8% at markets close as the budget failed to live up to expectations and on concerns over a higher fiscal deficit in the current fiscal year.
The expections from the budget were very high and the same were not translated in the budgetary allocations and announcements .Also the budget announcements from the FM are not in sync with the Economic Survey suggestionst . FDI in retail, increase in FDI limit in insurance sector, divestment to garner atleast Rs.25,000 crores have not been announced. Last but not the least, no serious attempt was made to contain the fiscal deficit.
Thanking you,
KNVS Subrahmanyam
Hyderabad
the trend of market after budget is good its want support if nifty breaks 3680 level then it can show us 3560-3386 level its from my view.what ever it may be so buy stocks after a big fall in a smnall quantity but trend looks good.