India reacts to FM Jaitley’s budget; Markets tumble

RSTV Bureau

BSE Sensex suffered the biggest single day fall since January 20, 2016.

Reactions to Budget 2016-17 have been pouring in. Politicians, India Inc and even the markets have given their verdict.

India Inc has reacted positively to FM Jaitley’s budget. But interestingly the markets plummeted into deep red during his speech.

During the volatile trading Sensex crashed 660 points but recovered most of the losses because of heavy buying by domestic institutions. Sensex finally closed  152.30 points down to finally close at 23,002. Nifty too cracked below 7,000 mark, to end the day 42.70 points in the red at 6,987.05. Nifty had also sunk below the 6,900-mark during Jaitley’s speech before recouping the losses.

Reports about an imminent rate cut by RBI also helped improve the sentiment battered by the proposal for higher dividend distribution tax on those earning more and a proposal to increase Securities Transaction Tax in some categories.

Banking stocks led by State Bank of India lost ground after the Finance Minister proposed a lower-than-expected Rs 25,000 crore to be provided for recapitalisation of public sector banks.

The sentiment took further hit after Jaitley proposed 10 per cent tax on dividend above Rs 10,00,000 and 0.5 per cent on Securities Transaction Tax on options, brokers said.

And a weak trend in global markets only worsened mood.

On the other hand, companies related to agriculture business caught buyers’ fancy and rose by up to 7 per cent after the finance minister announced an allocation of nearly Rs 36,000 crore for the farm sector and a higher credit target aimed at doubling farmer incomes in 5 years.

Let’s look at some reactions from India Inc

Ashish Kumar Chauhan, MD & CEO of BSE

“Market has appreciated the budget. Many schemes created to create demand, this is a good Budget to take India forward.”

Sunil Kanoria, President of ASSOCHAM

“A huge commitment of Rs 2.18 lakh crore on the rail and road infrastructure will not only kick start the economic growth but would also result in having a multiplier effect on India’s economy.”

Sumit Mazumder,President of CII

Budget 2016-17 is  positive, innovative. It focuses on growth & takes all sections of society together

KK Kapila, Co-Chairperson, FICCI’s National Committee on Infrastructure

“We welcome the move by the Finance Minister allocating Rs 55000  Crore for roads and highways alone. Allocation of Rs Rs.19,000 crore for  the rural roads under the Pradhan Mantri Gram Sadak Yojna will have a massive impact on rural development and connectivity”

Here are is how the political world reacted to the budget

Prime Minister Narendra Modi

“Women, farmers and rural India has been the focus of Union Budget. Important steps have been taken in the direction of doubling the income of farmers by 2022″

P Chidambaram, Congress Leader & Former FM

“Clearly the budget was expected to be political and I am not surprised” 

Mallikarjun Kharge Leader of Opposition in  Lok Sabha

“There is nothing in this budget for anybody other than corporates close to them”

D Raja, CPI leader

“Outside budget they promised a lot to corporate sector. Not evident now. Nothing spectacular in budget”

Nitish Kumar, JD(U) leader and Bihar Chief Minister

“They have been talking about development of agri, farmers but nothing concrete seen in Budget”

Devendra Fadnavis, BJP leader and Maharashtra Chief Minister  

“Stress has been given to development of irrigation, agri at gram level in this Budget”

Dinesh Trivedi, TMC leader

“Its not a budget which will boost growth, neither one which will have ease of doing business”