Markets react negatively to Sitharaman's Budget 2020


Business, Market

Sensex was trading over 150 points higher ahead of the Budget presentation

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Market benchmark Sensex plunged over 450 points in afternoon session on Saturday after the Union Budget projected widening of fiscal deficit for the current financial year.

The 30-share BSE index was trading 452.14 points, or 1.11 per cent, lower at 40,271.35 at 1320 hours.

Similarly, the 50-share NSE Nifty cracked 111.70 or 0.93 per cent, to 11,850.40.

Sensex was trading over 150 points higher ahead of the Budget presentation.

Presenting the Union Budget for 2020-21, Finance Minister Nirmala Sitharaman pegged the fiscal deficit at 3.8 per cent in the current fiscal, compared to the earlier target of 3.3 per cent of GDP.

In her second Budget presentation, the finance minister said certain government securities will be open for foreign investors.

She said the government plans to increase investment limit for FPIs in corporate bonds from 9 per cent to 15 per cent.

Top losers in the Sensex pack included L&T, Tata Steel, ONGC, PowerGrid, IndusInd Bank and SBI.

However, HUL, Bajaj Finance, Nestle, TCS and UltraTech Cement were trading higher.

The forex market remained closed for the weekend.