markets flat lined here on Friday as investors analysed the budget announced by Prime Minister Narendra Modi's government.
Stock market expert, Sunil Shah, said that there is no activity currently in the market but as people start understanding the repercussions of the budget, the market will start moving in a positive direction yet again.
"The markets are flat. Nifty is around 20 points up and sensex is around 50-60 points up. So, basically there's hardly any activity. I think people are still analysing and they are waiting for the global cues, so once things get cleared, we will see positive movement in the market," said Shah.
The market closed in the negative on Thursday due to global cues; however Shah expects a slew of reforms that would improve the economic scenario in the country.
"Yesterday, after the closing, there were some negative global cues and that's the reason that we saw market which was, at one time, up by 400 points sensex after the budget, came down and shut in the negative. So basically, it was due to global cues and I think market seems to be good. In the time to come, we will see a slew of reforms coming from the finance minister and the government. So, I am quite hopeful about the budget and the overall economic scenario," he added.
Though Modi's maiden budget won praise from investors, it has been left with open questions on how it will reduce the fiscal deficit and restore investor confidence.
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Expectations had been high that Modi would utilise India's strongest election mandate in 30 years to take radical steps comparable to the 1991 market reforms that unleashed an era of high economic growth.
Finance minister Arun Jaitley vowed to adhere to this year's "daunting" 4.1 percent budget deficit set by the previous government and cut it to 3.6 percent of GDP in each of the two following years.
In a bid to halt a two-year spell of weak growth, the government announced steps to boost capital spending in Asia's third-largest economy and reassure foreign investors that they will get fair treatment.
He managed to find room in the budget to fund projects to upgrade India's food distribution infrastructure. He raised subsidies on fertilisers and, against expectations of a cut, extended diesel subsidies - key measures to aid farmers who face poor monsoon rains this year.