Modi government's maiden budget bad day for markets, Sensex down 72 points
Mumbai: The much-awaited maiden budget of the Narendra Modi government failed to meet high investor expectations of big-bang reforms, with the benchmark Sensex on July 10 ending 72 points down to nearly two-week low level after witnessing a roller-coaster ride. The budget, which is the first official road-map of the Modi-led dispensation for fiscal consolidation and growth strategies, committed to medium-term consolidation and announced measures to attract capital inflows and boost investments.
However, experts said the issue on unpaid subsidy bills remains unresolved, which disappointed markets that embarked on a record-setting spree after Modi-led NDA assumed power at the Centre. After Finance Minister Arun Jaitley began reading his Budget speech, the Sensex started declining and tumbled over 300 points at noon. Markets however recouped losses as he completed the speech and the BSE 30-share index soared over 475 points to hit day's high of 25,920.46.
However, the Sensex in late afternoon erased all gains and settled at 25,372.75 -- down 72.06 points or 0.28 per cent -- on profit-booking. Intra-day, it moved in a wide range of over 800 points. Today's close is the lowest since 25,099.92 (June 27). "Budget is a mixed bag. The government did not use the opportunity to come clean on subsidies, which is a disappointment," said Nomura analysts Sonal Varma and Aman Mohunta in a note.
The wide-based 50-issue CNX Nifty of the NSE also eased further by 17.25 points, or 0.23 per cent, to end at 7,567.75. Shares from consumer durable, auto, IT and banking suffered losses while from Realty, Power were in demand.
"As expected, the new government didn't come up with any big-bang changes to what was introduced in the interim budget by UPA government. However, markets are disappointed on the fiscal consolidation front. The budget didn't speak anything about the rationalisation of subsidies which was widely expected by most market players," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio.
