The Hindu Business Line : Market may seek lower levels

Coimbatore, July 6 The stock markets reacted negatively to the Union Budget today because the Finance Minister’s speech did not meet its expectations on certain key issues and even if there is a bounce back from today’s lows, the markets may seek lower levels and move in tandem with the weak global markets now that the budget fever is over, according to market players in Coimbatore.

There is also a fear that some of the stocks that raced ahead of their QIP issues may seek lower levels at a time of weak market sentiments.

Speaking to Business Line, Mr Jose C. Abraham, Managing Director, Fortune Wealth Management Co India (P) Ltd, Coimbatore, said the market was disappointed over its expectations on STT and disinvestment road map not being met. The Finance Minister giving an indication of the roadmap for the disinvestment process also was not met. The Budget also did not outline any significant steps towards the reform process and the financial figures given in connection with the disinvestment was too meagre.

He said it was the budget expectations that kept the Indian markets on a high even when the global markets tanked last week. Mr K. Annamalai, former President, Coimbatore Stock Exchange, said the reasons cited for the fall were the expectations of the investors not being addressed regarding removal of securities transaction tax, enhancement of threshold limit for personal income-tax, removal of education cess and a roadmap for PSU disinvestment.

More Stories on : Stock Markets | Budget

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page