- Posted July 9, 2014 by
Sensex dips with the unveiling of Railway Budget
The share market lost its zing on Tuesday with the presentation of the Railway budget. Nifty and Sensex dipped as investors booked profits and withdrew. Now that the Railway budget has come as a disappointment, all eyes remain rooted on the Union Budget.
1) Sensex goes down with the presentation of the Railway budget.
2)Change in market trends post railway budget.
3)Budget fails to live up to the expectations of investors
4)All eyes on the Union Budget which might prove to be a gamechanger.
5)NIFTY predictions by analysts.
The Indian share market which previously had hit a record high has suddenly taken a nosedive. The sensex has crashed 550 points. Indian shares have fallen by over 2%, making it a record fall in 10 months. The reason can be a mild disappointment in the much-awaited Railway budget and consequent worries about the government’s anticipated low expenditure on the fiscal budget 2014. The widely prevailing optimism among investors in the last few weeks has been considerably dampened today with the unveiling of the Rail budget. While online sharetrading and offline share trading showed an upward spike since the elections, today’s market fluctuations have caught many investors off guard.
While the nation has shown tremendous optimism in the change in governance, a fair amount of this faith manifested itself in the share markets as well. As sensex and Nifty continued to scale record highs, the market frenzy were furthered fueled by all sorts of speculations, predictions and share market tips. Eyes remained glued on television screens and computer monitors as live share market activity was all investors could think about. In short, the last couple of months was an absolute riot with every development in stock trading appearing rosy.
However India’s railway related stocks declined once the railway budget was unearthed. Investors also felt that an 8.2% yearly growth in budget outlay was not sufficient. The budgeted outlay for 2015 is 643.05 billion rupees, which is marginally higher than the outlay of 593.54 billion rupees for the fiscal year 2014. The reason for the sudden dip is not just the railway budget, another reason for the fall in sensex is the mass scale booking of profits. The political upheaval has previously had a positive impact on the Indian share market. A lot depends on the budget that is to be presented on the 10th of July. Going by the opinion of experts, it could be an absolute game changer.
Railway minister DV Sadananda Gowda seems to have paid close attention to the demands of the general public. New trains and railway lines were introduced and passenger safety was the prime focus. Restructuring of the Railway board and the introduction of the much talked about bullet trains was very much a part of Gowda’s budget. However investors were tough to please, and the budget fell short of expectations, resulting in the nosedive.
All eyes remain trained on the union budget. The market is currently in a correction phase. On a long term perspective, the Indian market continues to be a bull market. Investors can park their funds in the market on every correction. The coming union budget is expected to meet the common man’s needs and wants. In a scenario where the union budget disappoints, NIFTY can even crash down below 7500. However, if the budget is a hit with the masses, NIFTY touching 8000 cannot be ruled out.