Budget 2016: Sensex, Nifty skid sharply; SBI falls as banks recap at Rs 25kcr

Moneycontrol Bureau

The market is down as government has decided to allocate less-than-expectated banks recapitalisation amount. FM Arun Jaitley has proposed to give Rs 25000 crore for banks recap. SBI has fallen 2 percent immediately. The Sensex is down 147.79 points or 0.6 percent at 23006.51, and the Nifty is down 62.90 points or 0.9 percent at 6966.85. About 871 shares have advanced, 1234 shares declined, and 131 shares are unchanged.

IDBI is up 6 percent as FM has said that govt has option to reduce stake in IDBI below 50 percent.

Here are few Budget proposal

Rs 25000 crore for bank recapGovt has option to reduce stake in IDBI below 50 percentRBI Act to be amended to provide framework for monetary policy codeBankruptcy Code to be introduced in Parliament in FY17Propose further FDI reforms for stock exchanges, INS, pensionDuty drawback schemes to be widenedTo issue guidelines for renegotiation of PPP contractsPropose Rs 31300 cr of infra bonds to be issued by various agenciesTo introduce public utility resolution billCalibrated market prices for gas based on landed price of alternate fuelsPropose to develop 10 of 25 non-functional airstripsTo incentivise gas production from deep sea & ultra deep waters

Posted by Nasrin SultanaFollow @NasrinzStory