The run up to the interim budget which was announced yesterday, has been completely swiped out in just two trading sessions. After the UPA Govt tabled its last interim budget yesterday, markets fell like a pack of cards. There was almost no respite to anyone in the budget neither was any tax relief. The STPI scheme can also be removed from Apr 2010.

The revised fiscal deficit of 6% of GDP announed today as against the 2.5% projected earlier is a matter of serious concern. It has led to heavy sell off by both institutional investors and FIIs. Reacting to all these, the Indian share markets lost significantly. Sensex was down by 270 points and closed at 9035 levels and nifty lost 78 points to 2770 levels.

The major losers included TATA Steel, DLF, ICICI,Suzlon etc. Realty was the worst hit sector followed by consumer durables, banking & metals. The Asian markets also closed lower when Nikkei-225 lost 1.4% and Hang Semg lost about 3.8% today.Currently the US markets have also made new lows with Dow plunging almost 2.9% at 7621 levels and NASDAQ is also down by 3.1%. There are growing concerns in the banking and financial sectors in the coming days.

Some analyst are of the view that markets are yet to see the bottom and we can expect a fall of another 20-30% from here. The coming days will be very crucial in deciding the direction of the markets. We can still see some fall in the markets tomorrow. So be cautious while trading and go for selective short selling of scriipts.

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