Amidst high expectations of reforms and tax benefits, the second Union Budget of the National Democratic Alliance (NDA) 2.0 government led by Prime Minister Narendra Modi and presented by Finance Minister Nirmala Sitharaman witnessed benchmark indices dipping.
Dalal Street found the proposals made by the Finance Minister woefully lacking in the longest Union Budget presented ever. Domestic investors were also cautious ahead of the Union Budget.
The Sensex ended 987 points lower at 39735, while Nifty settled 318 points lower at 11643. Meanwhile, broader markets also underperformed benchmarks with Nifty Midcap 50 and Nifty Smallcap 50 index down 3.08 percent and 3.22 percent, respectively.
With a vision to revive the economy which is going through a slowdown, Finance Minister Sitharaman said that Union Budget 2020 will boost income and purchasing power of Indians. She also said that the current Budget aims to meet the hopes and aspirations of all sections of the society.
Calling the budget competent, rational and long-term goal-oriented, Deb Mukherjee, CEO, Wisdom Capital, said, “Disposable income of the middle class will increase with tax benefits. This translates into more purchasing power which is good for the economy. The proposed LIC IPO is good news for the markets as well.”
“Data centre parks, huge national gas grid, fibre to home through the grand BharatNet scheme, and investments in quantum technologies are some of the key measures announced by the Finance Minister. These will definitely be attractive to the investors,” he added.
Mukherjee also welcomed the proposed reform measures for the electricity sector which is reeling under huge distribution losses by proposing a plan to install smart and prepaid meters.