Finance minister Pranab Mukherjee did not bring cheer to investors on Budget day. This is reflected in the returns of stocks on that day. The positive return of ?2541 quoted companies on BSE? decreased on July 6, 2009 as compared to ?2680 quoted companies? on last year?s budget day, February 29, 2008.

The share of the number of ?positive return companies? in total quoted companies decreased from 38% to 19% during the above period. The return of Sensex was also negative of 5.8% on July 6, 2009 from a negative return of 1.4% on February 29, 2008. Moreover, the return of BSE 500 also showed a negative of 5.6% from a marginal negative return of 0.9% during the same period.

Kishor P Ostwal, CMD, CNI Research said, ?Market corrected as there was big disappointment in 2009-10 budget. Fiscal deficit of 6.8% was way above FII estimate of 6% and below. No foreign direct investment (FDI) relaxation and no clarity on disinvestments figures were other two reasons. Even secu-

rities transaction tax was not withdrawn.

However the budget is in the right direction of growth. The oil deregulation, gas administered rate, disinvestment as well as FDI reforms all are on course and will see the light of the day separately.?

About 537 companies including pharmaceuticals and IT companies such as CMC, Fortis Health, Essar Oil, IFCI, Sesa Goa and Novarties that showed positive return on February 29, 2008 turned out to be negative on July 6, 2009.

For instance, the Budget day return of Novarties turned out to be negative of 1.6% from a positive return of 5.6% on February 29, 2008.

Additionally, the number of negative return companies increased from 1620 on February 29, 2008 to 2003 on July 6, 2009. A BSE

?return-wise? analysis of prices shows that maximum increase in companies were in the 5-10% negative return group on July 6, 2009 as compared to February 29, 2008.

In the negative return range of 0-5%, the number of companies increased from 1564 on February 29, 2008 to 1616 on July 6, 2009. Similarly in the negative return range of 5-10%, the number of companies increased from 48 to 364.

One interesting thing is that the share of no change companies in total quoted companies increased from 1.4% on February 29, 2008 to 2.1% on July 6, 2009.