Stock markets were not greatly impacted by The Economic Survey 2011-2012 and the Railway Budget presented in Parliament today, and experts said market expectation from General Budget is minimum.
After a choppy session, the Bombay Stock Exchange benchmark Sensex ended 68.50 points higher at 17,700.91.
“Nothing that has surprised has come in the Economic Survey. How the Finance Minister tackles inflation and still maintains the growth target of 9 per cent is to be seen,” Motilal Ostwal Securities Associate Director (Broking and Distribution) Manish Shah said.
Market players also felt that no major incentives were provided in the Railway Budget that is why investors offloaded the shares. Further they said that both the events emerged as non-events for the broader market which remained sidelined.
Rail stocks today fell sharply by up to 14 per cent on the Bombay Stock Exchange after the Railway Budget 2011-12 announcement.
Major laggards from the sector were Kalindi Rail Nirman and Titagarh Wagons whose shares tanked by 13.74 per cent and 13.06 per cent, respectively.
Further, market observers said that soaring crude oil prices and inflationary concerns are two big worries for the market.
“The Finance Ministers’ eyes would be on mounting crude oil prices which can increase fuel subsidies and eventually jeopardise the fiscal balance. Expectation from the market is minimum from this budget,” Emkay Global Financial Services Ltd Head Institutional Research Ajay Parmar said.
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