Interim budget fails to enthuse market
The interim budget presented by External Affairs Minister Pranab Mukherjee, who is in charge of Finance, on Monday failed to enthuse stock markets and the Bombay Stock Exchange benchmark Sensex lost 329.29 points. The broader NSE 50-share Nifty lost 99.85 points.
The vote-on-account was a non-event for the markets with no major initiatives or measures being announced. While a vote-on-account does not normally contain any major initiatives, the market had expected some sector-specific relief. “This expectation was in view of the weak economic environment,” said Dipen Shah, Vice-President, Kotak Securities.
The BSE Sensex opened at 9637.04 touched a low of 9279.10 and finally closed at 9305.46 against its previous close of 9634.74.
The NSE Nifty lost 99.85 points to close at 2848.50.
While there were no significant announcements made in the interim budget, there has been a fair amount of work already done by the government to stimulate demand such as the fiscal stimulus to sectors such as agriculture and increased spending on social services. “We now need to wait for 6-8 months to see the effect of these initiatives on the Indian economy,” Falguni Nayar, Managing Director, Kotak Investment Banking.