Budget woes weigh on markets: Lack of stimulus hits Nifty infra, auto

Despite the large FPI pullout last week, the rupee has remained stable

The benchmark Nifty 50 index has declined over 3 per cent since July 4, a sign that Finance Minister Nirmala Sitharaman’s maiden Budget has left investors disappointed as seen in Chart 1. 

Lack of a stimulus package, increase in surcharge on the rich as well as foreign portfolio investors (FPIs) and 20 per cent tax on share buyback, has affected sentiment. The bluechip-focused Nifty index has declined in five out of the previous six trading sessions, underperforming global equities (Chart 2). 

The fall in the broader market too has been in line with the large caps. Since the Budget, Rs