Union Budget news is not encouraging as the sensex nosedived on the budget day. The sensex took the cue from the budget and closed at 23002 points, down for the day by 152 points. This is a steep fall and investors have two minds to go in for fresh stocks at this moment. Persistent capital inflows from foreign funds into equity market and widespread buying by retail investors boosted the market sentiment during the last year budget. The earlier surge could not be sustained due to global recession and various other factors concerning our economy. To add to that the budget allocation saw to it that the sensex hit a new low and recovering thereafter. Thus sensex goes down, then up to close nearly one per cent lower on Budget day.
(The views expressed by the author in the article are his/her own.)