India share market July 6 2009

On July 6, 2009, the first budget of the new Indian government has been given out and it negatively affected the Indian share market. The sharemarket observed the biggest drop in the last six months. However, analysts and various business organizations expressed their satisfaction over the new budget. One of the prominent features of the new budget is that it focused more on the rural India.At the Bombay Stock Exchange, Sensex lost 870 points and closed at 14,043 points, a 5.83% decline. The Nifty of the National Stock Exchange went down 5.84% to 4165.70 points.

IT stocks took a nose dive in the share market. The BSE IT index went down 2.74% at 3236.33 points while CNX IT lost 114.75 points ending at 3430.55 points. In the budget Finance Minister, Pranab Mukherjee focused on “inclusive growth driven by IT.”

Bank, realty, capital good and metal stocks fell sharply in the share market today. The BSE Bankex plummeted 8.2% as the fiscal deficit pushed the bond yield.Shares of IndusInd Bank, ICIC Bank and IDBI, fell more than 9%. The BSE realty index fell 7.3%. The BSE capital goods index fell 7%. Areva T&D, Alstom Projects and Punj Lloyd in the capital goods sector fell more than 9.5%.

The BSE metal index fell 6.5% and BSE Power index fell 6.4%. Out of the 30 stocks of the Sensex, prices of 28 stocks declined. Tata Steel, JP Associates, and HDFC shares lost 9% each. Prices of Reliance Infra shares slipped 12.5% to Rs.1,131.

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