.... But markets refuse to cheer his Rail budget; Sensex dips 113 points

Even after announcement of a hike of 21 pct in capital outlay in Railway budget, the S&P BSE benchmark sensex continued its downward march for the third consecutive day by slipping another 113 points to finish at 22,976.00 in view of last day of expiry of futures and options Februry contract. Sharp fall in Chinese market amidst persistent foreign capital outflows also affected the market sentiment. Railway Minister Suresh Prabhu proposed increasing capital outlay for the Railways, the world’s fourth-largest rail network, by 21 per cent to Rs 1.21 lakh crore. He also kept freight rate and passenger fare unchanged in the Railway Budget for 2016-17 presented in the Lok Sabha. 

The sensex resumed higher at 23,105.16 and hovered in a range of 23,142.96 and 22,948.10 before finishing at 22,976.00 , showing a loss of 112.93 points or 0.49 per cent. The sensex has tumbled by 812.79 points or 3.42 per cent in three days. The NSE 50-share Nifty also fell by 48.10 points or 0.69 per cent to 6,970.60. The next major trigger for the stock market is Union Budget 2016-17 to be announced early next week. Before the Budget, the Finance Ministry will present Economic Survey for 2015-16 in parliament on Friday.