Mumbai: Notwithstanding the deep distress shown by the investors, market intermediaries and other participants have welcomed the Union Budget.
In one of the strongest negative reactions to the budget, the benchmark Sensex tanked 2.43 per cent Saturday.
Brokerage-turned-diversified financial services player IIFL’s founder and chairman Nirmal Jain sought to attribute the heavy selling to ‘high expectations’ ahead of the budget.
BSE chief executive Ashishkumar Chauhan said the finance minister has delivered a “growth, consumption- and job-oriented blueprint to promote inclusive growth”.
The Association of National Exchanges Members of India, a union of trading members, said the market reaction was “slightly overdone on the negative-side”.
“The government has definitely put more money in the hands of investors, particularly retail investors. The counterbalancing impact will be seen by the markets going forward and, in my view, stability would prevail as we go forward,” its president Vijay Bhushan said.
Sampath Reddy, the chief investment officer at Bajaj Allianz Life, termed the budget as inclusive, which is focusing on increasing disposable incomes and rural sector.
“We expect the markets to soon digest the budget and move onto fundamental and global factors over the coming months,” he added.
However, the head of financial services firm Centrum, which has its genesis in the broking business, was a bit circumspect.
“The government has walked a few steps forward to bring back economic momentum, but a lot more remains unaccomplished. We look forward to few more policy measures being announced in the near future to address some seriously affected sectors and lift market sentiments,” it said.