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Mumbai/Chennai, July 6 FIIs felt market correction was due to strectched valuations and high hopes. “The market was due for a 10-15 per cent correction due to stretched valuations and unrealistic expectations on reforms in the Budget which seems to be playing out in the market correction,” Bank of America-Merill Lynch statement said.

“The Budget has disappointed the market on many fronts, but the biggest factor was that the Finance Minister did not lay out a roadmap for reforms, as was widely expected. Those of the view that the Budget would encompass all sorts of exciting structural economic reforms have just had their hopes firmly dashed. Even the long-anticipated decision to increase the Foreign Direct Investment limit in the insurance sector from 49 per cent was avoided. This was largely a populist Budget focussed mainly on the poor,” according to HSBC Global Research.

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