NEW DELHI: Equity indices on Friday fell sharply after Union finance minister Nirmala Sitharaman presented her maiden
budget. The benchmark BSE
sensex dropped nearly 400 points, while the broader NSE Nifty tested 11,800-levels as the investors weighed the Budget.
Sensex crashed 395 points or 0.99 per cent to close at 39,513; and Nifty moved 136 points or 1.14 per cent lower to settle at 11,811.
Yes Bank, NTPC, ONGC, TCS, Vedanta, ITC and Sun Pharma were among the major loser on the BSE index with their shares falling as much as 8.36 per cent. On NSE, sub-indices Nifty Metal and Realty witnessed a steep fall, down as much as 3.76 per cent.
Trading turned cautious as investors waited to see details of the government’s spending plans, any proposals for tax cuts and whether it will raise its fiscal deficit target.
“This budget is not very different from the interim budget (in February) even as market participants await fiscal deficit proposals,” Deepak Jasani, head of retail research at HDFC Securities, told news agency Reuters.
“Trade will be fluctuating. Till the fiscal deficit proposals are heard, one should not jump to conclusions," he added.
Sitharaman announced plans to boost infrastructure and foreign investment in the new government’s first budget since winning a second term.
The government said on Thursday it expects economic growth could get back up to 7 per cent this year, but cautioned it will face challenges as Prime Minister Narendra Modi’s government struggles with a sluggish economy.
Sithraman said that India would become a $3 trillion economy in the current fiscal year, and a $5 trillion economy in the next few years, though some analysts said the latter target will be a tall order.
(With agency inputs)
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