Budget 2019 impact: Bearish trend likely to continue in stock market

In terms of major sectors, banking, financial services and FMCG were marginally positive after the Budget announcement, while the other major sectors saw losses

The market reaction to the Budget was negative. The sell off was widespread with most major sector seeing losses. Advances (467) were outnumbered 3:1 by declines (1317). The F&O segment saw 21 advances versus 138 declines. The negatives as perceived by the market seemed to be the following. Higher customs duties will mean rising input costs for many manufacturers. The indication that the government may ask Sebi to mandate a minimum 35 per cent shareholding for listed companies also impacted closely-held firms since this would mean a spate of offers that lead to an overhang of supply.

In addition, higher excise