IOP CORROSPONDENT
New Delhi, July 5, 2019: Sensex and Nifty took a dive on Friday as Modi government's Union Budget for 2019-20 failed to cheers investors. Even though the markets opened higher with the benchmark S&P BSE Sensex zooming past the 40,000 mark to hit 40,032, the index fell over 500 points from the highs.
During the intra-day trade, the Sensex had hit the 40,000 mark and Nifty edged closer to 12,000-level. But soon during the Budget speech, the equity indices gave up all the gains. Nifty Metal and Realty were most affected among sectors.
Shares of NBFC gained after the government announced more powers to Reserve Bank of India (RBI) to supervise the sector. The PSU Bank stocks also rose. However, most of the sectors trades in the red zone.
Eminent economist Swaminathan Aiyar said there was nothing grand in Nirmala Sitharaman's first Union Budget and said he was surprised to see that the Finance Minister didn't even mention the fiscal deficit target, which the market was eagerly looking for. "Is there something to hide in it?" Aiyar asked.
"At best, it was an incremental Budget. No bold steps. No visionary things. Maybe, I should call it a supplementary Budget," Aiyar, Consulting Editor, ETNow, said in his first reaction t ..
He said the Finance Minister tried to ease the pressure of borrowing on the domestic market by offshoring it, which seems like a positive step. "Even the rescue package for NBFCs was a big positive, as was the removal of angel tax, which was long overdue," he said.
Imagecredit: The Economic Times