|Markets reacted negatively , plunged more than 4% at around 1 PM (IST)|
Domestic markets were trading under huge selling pressure (at around 1 PM) as investors were disappointed after Union Budget 2009-2010 did not contain any major reforms such as a roadmap to increase FDI in infrastructure & insurance, decontrol fuel prices and any clear roadmap on divestment. A surge in fiscal deficit target to 6.8% added to the market's woes. Sensex slipped below the 14,400 mark and Nifty fell below 4,250 mark. The significant selling pressure witnessed among Banking, Power, PSU, Realty and Metal stocks. The broader market indices were also under pressure as both BSE Midcap and BSE Smallcap indices traded with a loss of more than 2% each.
However, markets opened higher today ahead of the Union Budget. Sensex crossed the 15,000 mark and Nifty jumped above 4,450 mark in the early trade. All the sectoral indices were trading in green.
With the budget focusing on the common man rather than the economy as a whole, Sensex touched lowest level of 14,147.80 and Nifty fall to as low as 4, 195.40 level (at around 1 PM).
Shares of companies that run insurance business fell after the Union Budget 2009-2010 did not include any measures to hike foreign direct investment limit in the insurance sector. Reliance Capital ,ICICI Bank, HDFC, Bajaj Finserv, SBI, Aditya Birla Nuvo and Max India fell by between 3-7%.
PSU stocks fell as government bypassed announcement of divestment in public sector companies. Central bank of India, Hindustan Copper, MTNL, State Trading Corporation, Bharat Heavy Electricals, Power Finance Corporation fell by between 2-5%.
Some of the Positives from the budget are:
While, disappointments are:
Monday, July 6, 2009
Budget Analysis 2009 - 2010
Posted by Morgan at 10:25 PM