Interim Budget - What budget? Markets react 4% down
The BSE Sensex fell 3.53 percent on Monday, after the interim budget failed to deliver on investor expectations on a stimulus plan for sectors such as infra, construction and autos.The 30-share benchmark index provisionally fell 340.53 points to 9,294.21, with 29 components declining.The 50-share NSE index provisionally closed 3.5 percent lower at 2,845.15.
WHAT DID IT HAVE FOR THE MARKET?
Nothing! The sensex fell more and was down 277 points as soon as the Budget was over.
No tax changes, no sops for any of the industries.
Interest subvention for some export loans extended.
In October 2008, the government had withdrawn a 4 percent interest rate subvention granted to gem and jewellery exporters. Subsequently, in a stimulus package last December, it extended a 2 percent interest rate subsidy till March 31.
THE NUMBER CRUNCH:
Allocation of Rs.40,900 crore for Bharat Nirman.
FY10 budget revenue deficit seen at 4% and fiscal deficit at 5.5%
FY09 fiscal deficit seen at 6% of GDP v/s estimate of 2.5%
FY09 Revenue deficit of 4.4% of GDP v/s estimate of 1%
WHAT DID IT HAVE FOR THE MARKET?
Nothing! The sensex fell more and was down 277 points as soon as the Budget was over.
No tax changes, no sops for any of the industries.
Interest subvention for some export loans extended.
In October 2008, the government had withdrawn a 4 percent interest rate subvention granted to gem and jewellery exporters. Subsequently, in a stimulus package last December, it extended a 2 percent interest rate subsidy till March 31.
THE NUMBER CRUNCH:
Allocation of Rs.40,900 crore for Bharat Nirman.
FY10 budget revenue deficit seen at 4% and fiscal deficit at 5.5%
FY09 fiscal deficit seen at 6% of GDP v/s estimate of 2.5%
FY09 Revenue deficit of 4.4% of GDP v/s estimate of 1%
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