A maturing market amid the mayhem
Market slides as budget disappoints
The Sensex plunged 5.8 percent on Monday as the higher-than-expected fiscal deficit announced by the government in the Union budget disappointed investors.
The 30-share sensitive index swung from an intra-day high of 15,097 to an intra-day low of 13,959 and closed 870 points lower at 14,043. The fifty-share Nifty ended 5.84 percent down at 4,165.
The fall in the benchmark was led by Reliance industries, ICICI Bank, L&T and HDFC.
Reliance Infra was the benchmark’s biggest loser with the stock plunging over 12 per cent. The other big losers were ICICI Bank, JP Associates and Tata Steel, all down over 9 per cent.
The budget fell short of investor expectation as it did not include any significant policy changes. The populist budget instead focused heavily on increased borrowing and spending to aid farmers and the poor, pushing the fiscal deficit for the year ending March 2010 to a higher-than-expected 6.8 percent of GDP.
Do you think the government could have introduced more market-friendly reforms to boost investor sentiments?