Indian markets fell sharply today as Budget 2020 announcements failed to live up to the expectations of the Street. The Sensex tumbled 987 points or 2.4% to 39,735. On the NSE, the broader Nifty50 index slumped 2.6% to 11,643. Among the Sensex stocks, ITC fell 7% after the government proposed an increase in excise duty on tobacco. Other top losers in the Sensex pack included L&T, HDFC, SBI, ONGC, ICICI Bank and IndusInd Bank that fell between 4% and 6%.

"The budget is below the par considering that the market had very high expectations from the government with support to the economy and more spending which is lacking in the details. Adding flexibility to fiscal deficit of FY20 is positive but extending the same to FY21 would have provided more confidence to the market," said Vinod Nair, head of research at Geojit Financial Services.

Finance Minister Nirmala Sitharaman today revised the country's fiscal deficit target to 3.8% for the current fiscal year, from an earlier target of 3.3%. The finance minister also pegged the fiscal deficit target for the year 2020/21 at 3.5% of the GDP.

The finance minister proposed a cut in income tax rates and change slabs to lower tax incidence for those earning up to ₹15 lakh a year but it will be applicable for those willing to forego deductions, exemptions.

VK Vijayakumar, chief investment strategist at Geojit Financial Services, said:" The changes in personal income tax is only marginal since the benefits will be available only to those who opt for no exemptions. Abolition of DDT is good for markets."





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