The Finance Minister P Chidambaram's Union Budget proposal is
not being well received by the market.Chidambaram presented an
overall neutral Union Budget. As expected, Chidambaram has made
steep hike in allocation to social and rural schemes, eyeing
general elections due next year. At the same time, he has pegged
fiscal deficit at 4.8% for next fiscal to avoid possible rating
downgrade. However, it was disappointing for most industries, which
are looking at growth stimulus and for common man looking at
reduction in taxes.
But what hurt the markets most was the announcement on GAAR.
Chidambaram said the government will implement the modified GAAR,
which aimed at companies and investors routing money through tax
havens such as Mauritius, from Apr. 1, 2016. This weighed heavily
on the markets and stocks, and Reliance Group stocks were no
exception.
Suzlon Energy was the biggest loser in A group with fall of
33.81%, followed by RCom (11.82%), Uco Bank (10.7%), Pantaloon
Retail (9.74%), Reliance Infrastructure (9.28%), IFCI (9.05%), Core
Projects(9.04%), MMTC (8.54%), Reliance Capital (8.28%) and Unitech
(7.95%).
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