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.
Posted by Ayeshea Perera on Tuesday, July 7, 2009 at 12:56 pm
Filed under Budget Reactions, Markets, Sensex · Tagged budget, Markets, roadmap, Sensex
