indias-budget-turns-investors-bearish

India's budget turns investors bearish

Specialists are sanguine about India's budget announcement yesterday, but investors hammer stocks, causing the Sensex to lose 6% intra-day.

The Indian budget for the fiscal year to March 2010 was announced yesterday to a cautiously optimistic reception from specialists, but a resounding thumbs-down from the stockmarket. The euphoria prevailing in Indian stockmarkets since the Congress-led UPA government won a majority on May 18 was quelled as markets lost 6% during the course of the day's trading.
 
The finance budget for the fiscal year followed the railway budget which was announced on Friday. The railway budget seemed designed for popularity as India's railway minister Mamata Banerjee announced no increases in passenger or freight fares.

All eyes were on the finance minister of the new government, Pranab Mukherjee, who is delivering the first budget in...

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