Markets end the day lower, as budget lag persists

Commentary

oi-Sunil

By Sunil Fernandes

Published: Monday, March 19, 2012, 15:47 [IST]

Markets ended the lower today, as budget hangover continued to adversely affect sentiments. The BSE Sensex closed the day lower at 17,273 points, down 192 points, while the NSE Nifty closed the day lower by 61 points at 5257 points.

Among the major losers today were the banking stocks, which were sentimentally weighed down after reports of a downgrade of PSU bank, Union Bank. PSU Banks like Canara Bank, State Bank of India, Punjab National Bank and United Bank lost heavy ground.

Among the gainers today was ITC, which marketmen believe would not be heavily affected after the recommendations of the Union Budget.

Policy actions which were slated for the month of March have now been completed. All eyes are now focused on next month's monetary policy review, which will either make or break the markets. Any policy inaction on the part of RBI, especially rate reduction will lead to sentiments getting adversely affected.

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