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Worst ever Budget day for Dalal Street

PTI  Mumbai, July 06, 2009
First Published: 19:44 IST(6/7/2009) | Last Updated: 20:19 IST(6/7/2009)
It was the worst Budget day on Monday for Dalal Street with the Bombay Stock Exchange index Sensex plunging over 850 points - the biggest fall on any Budget day - on concerns of widening fiscal deficit.


According to an analysis of Sensex movement on the Budget days in the past ten years, Monday's drop of over 869 points in the benchmark index is the biggest fall.

 "The stock markets have voted on the tax Budget presented today. However, I believe that this fall could be attributed partially to the markets having run up on the back of disproportionate expectations," KPMG India CEO Russell Parera said.

 In 2008, the Sensex fell by 245 points to 17,579 points on the Budget day, while on February 28, 2007, the Budget had failed to cheer investors on a choppy day. The Sensex shed 541 points to end at 12,938 in 2007 on that day.

 However, in 2006 the market had been upbeat on Budget announcement day and had settled above the 10,000 point mark after a gain of 88 points.

In 2005, after a volatile trade, the index had seen a smart recovery after the Budget announcement on fresh buying
and had settled above 6,700 level with a gain of 144 points.

 In 2004-05, the United Progressive Alliance presented its first Budget on July 8. The Sensex had plunged by 112 points after the announcement of the proposal to levy securities transaction tax.

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