Mumbai, July 6 : Absence of big-bang reforms in the Union Budget today disappointed the markets, with the BSE Sensex falling by 869.65 points, the biggest on any Budget day and in eight months.
This is the biggest fall after October 24, 2008, when the Sensex had lost 1,070.63 points after the RBI's monetary policy review.
The Bombay Stock Exchange's 30-share barometer settled the day at a nearly six-week low of 14,043.40, a net fall of 5.83 per cent from its previous close.
The Budget, presented by Finance Minister Pranab Mukherjee, lacked any major economic reforms including initiatives to increase foreign direct investment in insurance and decontrolling fuel prices. The fiscal deficit target also rose sharply to 6.8 per cent for 2009-10.
Breaching the 15,000 psychological mark, the market later spiralled downwards as Mukherjee began presenting the Budget proposals in Parliament.
"The Budget is silent on the timeline for tackling the fiscal deficit position of the country, and the reforms which would have aided in handling the fiscal situation of the government," Angel Broking CMD Dinesh Thakkar said. - Agencies
Jul 06, 2009