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Market outlook: Post Budget 2016, focus shifts to global events

The recovery in the markets, analysts say, was mostly on account of the government's plan to stick to its fiscal deficit target of 3.5% of GDP

A man looks at a screen across the road displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai
A man looks at a screen across the road displaying the Sensex on the facade of the Bombay Stock Exchange (BSE) building in Mumbai

After slipping over 500 points in intra-day deals after Finance Minister Arun Jaitley’s proposals to reintroduce General anti-avoidance rule (GAAR) from April 2017, allocating Rs 25,000 crore for recapitalisation of PSU banks that is much below Street’s estimates and proposal to levy 10% dividend distribution tax in the hands of investors, the S&P BSE Sensex recovered sharply.  By late noon deals, the benchmark index had erased most of its intra-day losses. The recovery in the markets, analysts say, was mostly on account of the government’s plan to stick to ...