Why Sensex crashed on the budget day? FM Nirmala Sitharaman has this answer

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Published: February 3, 2020 8:18 PM

Reacting to the sharp fall of the market on the budget day, Finance Minister Nirmala Sitharaman said that investors are in the true working mode on Monday and added that the market was happy on the first day of the week.

Budget 2020 India, Budget 2020-21Budget 2020-21 India: Sitharaman said that the Modi government would not repeat the mistakes committed by the previous UPA regime.

Union Budget 2020: Reacting to the sharp fall of the market on the budget day, Finance Minister Nirmala Sitharaman said that investors are in the true working mode on Monday and added that the market was happy on the first day of the week. “Why was Sensex not happy on Budget day? But I see them being happy today. Monday is the true working mood, and today’s mood is that they are happy. Aren’t they? Not exuberant but happy somewhat,” ANI reported Sitharaman saying this on Monday.

The stock market was open on the budget day on Saturday this year. NSE Nifty had closed at 11,661, lower by 300 points whereas the BSE Sensex had settled at 39,735 down by a whopping 987.96 points from its previous close of 40,723. The fall was mainly attributed to the investors’ disappointment over the budget presented by Sitharaman.Terming the government’s approach over the macro-economy transparent Sitharaman said that the government showed in the budget where the money would come from and where it would go, CNBC TV 18 reported. She also added that the budget had been made after incorporating the ground realities and on-ground inputs.

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Replying to the pre-budget speculations of government stretching fiscal deficit target to over 4 per cent Sitharaman said that the Modi government would not repeat the mistakes committed by the previous UPA regime. The government has revised its fiscal deficit estimate for the FY 2019-20 and pegged it at 3.8 per cent of the GDP hiking it from the previous target of 3.3 per cent. She also added that the government is spending money for creating assets that can give greater connectivity to places from where produces reach the markets.

Finance Minister Nirmala Sitharaman presented the second union budget of the second term of the Modi government on Saturday. The budget was presented amidst economic slowdown due to which the budget was widely expected to give a fiscal push to revive the economy.

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