The BSE Sensex ended 210 points or 1.2% lower at 17,466 while the broader Nifty index declined 63 points at 5,318 on the Budget day.
Finance Minister Pranab Mukherjee's proposals to hike excise duty and service tax did not go down well with corporates, though the Street had already factored in the hike. The FM's announcements on the fiscal front sounded ambitious to economists and analysts in the absence of a credible roadmap.
"Overall an uneventful budget though a little more credible than what we saw this time last year. The 7.6% GDP figure is not realistic. The sub-2% subsidy figure is also very hard to crystallize. So, 5.1% deficit may reach 6%," Tarun Kataria, chief executive office of Religare Capital Markets told NDTV Profit.
Market analysts dismissed the Budget as a non-event.
"The Budget was expected to be tough and it is tough on the corporate world... There are no surprises on the down side and upside and it's business as usual for markets," Raamdeo Agrawal , Joint Managing Director of Motilal Oswal said.
Meanwhile, a Budget proposal to tax offshore transfers in India (if the shares derive its value substantially from assets in India) from retrospective effect did not go down with analysts.
"This will be very negative from FDI and FII perspective. I would like to think this would not happen because this is something that should not be done," Kataria said.
Madhav Dhar, Managing Partner of Traxis Partners LLC told NDTV Profit the Budget was a big yawn for the most part and ended with a violent scream.
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