Banks, capital goods, metals and realty stocks were beaten out of shape in today's trade. BHEL was down 9 percent, Hindalco lost 6 percent while SBI, L&T and Tata Steel were other losers in the Sensex. Both midcaps and smallcaps which had seen robust rally in the run up to the Budget saw massive selling today.
For market today the big trigger, which is the Union Budget is now out of the way, so there will be more focus on how exactly the markets perform based on global cues, earnings as well as monsoon trajectory is and how government is going to achieve the fiscal prudent targets that they put out.
According to a CNBC-TV18 poll, dollar revenue growth is expected to improve to 2.2 percent, but may lag its peers. Margins are likely to remain under pressure while FY15 dollar revenue guidance is seen to be maintained at 7-9 percent.
Calling it a "transformative" Budget focussed on policy initiatives, Power Minister Piyush Goyal said the measures announced today will take care of all sections of society and boost the economic growth of the country.
"The commitment of the new Indian government to maintaining the trend of fiscal consolidation would benefit the sovereign's credit fundamentals. However, the budget announced today has opted for a cautious approach toward tackling some of the economy's structural weaknesses," S&P said in a statement.
Arun Jaitley's Union Budget today too was not exactly overflowing with specific timelines for tackling some of the vexatious issues. The market first dropped sharply, then rallied with even greater force, before closing on a subdued note, but well off the days lows.
Maintaining that Finance Minister Arun Jaitley had done a better job than he had even expected, HCC chairman and managing director said the Union Budget the FM presented today was disinflationary, lead to lower interest rates and kick-start the investment cycle.
India Inc today welcomed the Narendra Modi government's maiden Budget, saying it sets the tone for attaining higher growth trajectory, job creation and attracting much-needed investments for an economy grappling with multiple challenges.
Finance minister Arun Jailtley today opted for a restrained approach to limit foreign Direct Investment in Defence manufacturing to 49% without control from the existing cap of 26%. Ultimately, this does not make any material change and may not be enough incentive for foreign firms to bring in investments and proprietary technology.
The big day is here. Traders and investors from India as well as across the world will watch Narendra Modi's maiden budget closely. Finance Minister Arun Jaitley will present the Union Budget 2014 in Lok Sabha today.