Indian markets fell for the second day in a row.  

Yesterday the Finance Minister Arun Jaitely stated that the fiscal situation of the central government is worse than it appears.  At the end of the day,  it was found that  for every gainers in BSE there were more than two losers for every gainer on BSE.

In fact on Tuesday we informed you that there will be correction and interestingly the correction started on Tuesday.  The union budget should clearly dictate the direction of the market, at least in the short term. Let us watch the show and decide what to do now in the market.

Today at 11 AM Finance Minister Arun Jaitley will present the final Union Budget for 2014-15 in Lok Sabha. There are expectations that the finance minster will announce measures in the Budget aimed at bolstering economic growth. The expectations include

1 Increase in outlay on infrastructure sector with focus on stricter and time-bound implementation of projects

2 initiatives towards investments in agriculture and irrigation aimed at easing supply bottlenecks for food-grains,

3. plans to reduce the fiscal deficit,

4. a roadmap for reducing the subsidy burden and timeline for implementation of the GST

5. Abolition of retrospective taxes

Let us check if these issues are addressed in the budget and the immediate effects of the budget will be felt in today’s market movements.