Investors cheer Budget after showing initial concerns

first_imgInvestors gave a thumbs up to the Union Budget 2014-15 presented by the Union Finance Minister Arun Jaitley on Thursday, with the benchmark Sensex moving up over 450 points during intraday trade after an initial steep fall.Investors, who were initially concerned about the lack of any big ticket announcements in the budget, were cheered by the presentation of a ‘prudent’ budget that gave broad directions of bringing about a positive change in the investment climate and measures to rein in the fiscal deficit to 4.1 per cent of the GDP. At 2.30 pm, the Sensex was up 1.63 per cent on the Bombay Stock Exchange or 413 points even as the Nifty was up by 128 points.Overall, the market recovered almost 800 points from the lows it had plunged mid-way through the FM’s speech.”The Budget ticks all the boxes, and shows a willingness by the government to listen, and will act in due course,” KV Kamath, non-executive Chairman of the ICICI Bank, told a television channel. “The industry will take this at face value, and hopes to see action on all these fronts.”What has cheered most market observers is that the government has not tried to bite off more than what it can chew, and has admitted to the challenges in most sectors. “The government has kept more place-holders, by picking up many sectors, and committing Rs 100 crore to each to do detailed studies, so that it can determine if it has to take it up later or not,” said Pawan Goenka, Executive Director, Mahindra & Mahindra, a leader in making sports utility vehicles in the country. He said the auto industry was not expecting any specific announcements, since certain excise duty reductions were already carried out.advertisement”What is significant about the Budget is that it is prudent, the numbers are believable,” he said.Shares of companies in infrastructure, power, banking and realty went up following the budget announcements. Experts are expecting the markets to remain bullish in the coming days. “Most investors are optimistic on the government’s ability to execute, although there is no word on reforms, subsidies and labour law,” said Nirmal Jain, Chairman of India Infoline.last_img