Sensex plunged 870 points or 5.8% at 14,043 while, Nifty plummeted 258 points or 5.8% to shut shop at 4,166.

Indian markets ended with a deeper dent on Monday as the Union Budget failed to meet expectations. The BSE Sensex posted its worst performance on a Budget day in over a decade and benchmark government bond yields crossed 7% after the finance minister announced much higher fiscal deficit target for the year. The rupee too took a knock amid lack of any big bang reforms and a few nasty surprises like the increase in MAT.

The Budget turned out to be a nightmare for traders and investors on Dalal Street. There was unabated selling as the key indices plummeted post the presentation of the Union Budget in parliament.

Commenting on the stock market’s negative reaction to the Union Budget, Finance Minister Pranab Mukherjee has said the market may have expected too much from the country’s annual financial document. The stock markets slipped sharply just as the finance minister progressed into his budget speech in Parliament on Monday and was at one point 5% down, mainly due to the lack of any major announcements.

“I had at the start of my speech said ‘One budget speech won’t address all the problems [that the economy faces],” Mukherjee said in an interview to Lok Sabha TV, adding that the budget was not the only instrument to address the economy’s issues.

The finance minister added that it was not possible to set a divestment target.

On the fiscal deficit (raised to 6.8% from 6.2% earlier), the FM said it was possible to improve the fiscal deficit target in the next budget.

“I had at the start of my speech said ‘One budget speech won’t address all the problems [that the economy faces],” Mukherjee said.

The BSE Sensex plunged 870 points or 5.8% at 14,043 after touching a high of 15,098 and a low of 13,959. The index had opened at 14,962 against the previous close of 14,913.

The NSE Nifty plummeted 258 points or 5.8% to shut shop at 4,166.

source: Indiainfoline

Tags: 2009 hot budget stocks, budget 2009, market up or down tomorrow, nifty tips, nse hot stocks, NSE Tips, sensex down

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