Blaming the Budget? Blame your beliefs

Budget was a disappointment for the market but why despite six previous flop shows, the business community had fervid belief that the seventh time would be any different?

Until Saturday, there seemed to be a consensus among businessmen and financial sector experts that this Union Budget will do something truly innovative and big to put India on the growth path. Riding on this sentiment, the Sensex soared from around 38,000 in October to an all-time high of over 42,000 in the third week of January. The consensus of hope was best captured in a note I received from a business consultant two days before the Budget: “2020 will be remembered for many years for the way things changed quite abruptly in India. That tipping point could be the