Budget 2016 announcements depress equity markets

Negative Asian cues and a dip in the rupee value at Rs 68.72 include other factors leading to the plunge

Union Budget announcements, combined with negative Asian cues, and a dip in the rupee value depressed the Indian equity markets during the afternoon trade session on Monday.

Consequently, the barometer 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) plunged by over 151 points.
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Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) traded in the red. It was lower by 62 points or 0.88% to 6,968.15 points.

The Sensex, which opened at 23,238.50 points, traded at 23,002.77 points (at 12.00 p.m.) -- down 151.53 points or 0.65 percent from the previous day's close at 23,154.30 points.

 

During the intra-day trade so far, the Sensex touched a high of 23,293.80 points and a low of 22,956.80 points.

Vaibhav Agarwal, vice president and research head at Angel Broking, elaborated that markets traded on a negative note, led by mixed Asian cues and cautiousness prevailing around the budget.

"Expectations continue to remain low with markets not having witnessed any pre-budget rally this year."

Nitasha Shankar, senior vice president for research with YES Securities said: "Markets eagerly watch out for an increased spending in the infrastructure space, road map to bank recapitalisation and a rural thrust."

"Along with this it will be crucial for the finance minister to strike a right balance between growth and fiscal consolidation," she said.