Market's thumbs down to Budget: Here are 5 factors that dragged Sensex 400 pts

Sensex crashed 394 points to 39,513 while the Nifty closed 135 points down at 11,811

Sensex plunged nearly 400 points and Nifty50 dived below 11,900 taking supectors, the S&P BSE Metal index fell 3.8 percent, followed by the S&P BSE Realty index that was down 3.6 percent, an were high expectations from the budget given the larger mandate of the new government.

“This excitement met with a weak financial position, limiting the government from announcing eventful new measures. Though below expectation, it provides a prudent plan for FY20 with a conservative approach to not overspend during this slowing economy,” he said.

Broader market underperformed benchmark indices as the S&P BSE Midcap index fell 1.39 percent while the S&P BSE Smallcap index was down 1.36 percent.

Experts say it was not a bad budget but rise in taxation for HNIs could have hurt sentiment, but that should be temporary and markets should eventually recover next week. The government introduced a lot of structural reforms at the macro level, and big infra-push should support the economy.

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