Even though FIIs and large financial institutions like UTI described the budget as one which would fuel long term growth, several of them could be seen waiting in the wings. "We have been buyers today and find the existing levels attractive. I'm sure brokers will jump back into the market when they study the recommendations closely", said UTI chairman, GP Gupta.

The 30 share BSE-Sensitive index nosedived by 151.70 points to close at 3,642.68 points, over the pre-budget close of 3,794.38 points. The Nifty index also fell sharply by 38.45 points to close at 1,053.75 in the post budget session. Reflecting the negative sentiment at the GDR markets on account of tension in the region as a result of the nuclearfallout, the Skindia GDR index touched its 52-week low of 736.26 points registering a net loss of 4.29 per cent. The major losers at the GDR markets were the fertiliser, aluminium and auto sector stocks, which fell by 7.46 per cent, 6.82 per cent and 6.50 per cent respectively.

"The budget failed to provide any major sops to the FIIs hence the reaction was anticipated," explained a market maker. "Rumours on buy back of shares being announced in the budget since the third week of May, had seen considerable chunks of the swadeshi stocks being warehoused by local punters to reap the benefits of the budgetary announcement. In the absence of such announcements the operators had no choice but to exit," explained a market analyst.

The budgetary sops for employees of info-tech industry also failed to address the needs of the market. Confusion in terms of dual listing of securities continued to disturb market sentiment.

Info-tech counters which realised substantial gains in the pre-budget session saw substantialerosion in the stock values during the second half of the session. As market experts described the fall has more to do with speculative liquidation on account of June 2 being the last day of the account on NSE, they also explained the need for the market to understand and absorb the positive aspects of the budget which would gradually trickle down to the markets in the long term.

"Investors need to understand the implications of the budget. Expectations were built too high hence it had to collapse. However, the budget should see the index move in a range bound manner between 3,500 and 3,900 points," said Jayesh Sheth, treasurer of BSE. the need for the market to grasp the intricacies of the budget, analysts cited the example of Tisco, which despite standing to benefit by the excise duty cut and thefive per cent hike in the CR coils, did not find favour with the market. The stock fell from its pre-budget high of Rs 160.90 to touch a low of Rs 147 to finally close at Rs 150.80 registering a phenomenal volumeof 59.04 lakh shares.

However the market portrayed an immediate and spontaneous reaction to the negative aspects of the budget in terms of the hike in excise duty on packaged tea and processed foods, basically the FMCG sector. Tata Tea slumped by over 8 per cent, while FMCG stocks like HLL, Cadbury, Nestle and Brittania recorded losses to the tune of 3-6 per cent on an average. Rumours of FIIs having sold Zee Telefilm and MTNL continued to float in the market even during the post budget session.

Morgan Stanley was, however, reported to have bought huge chunks of Larsen, which reflected on the stock price during the pre-budget session.

The positive reactions to the sops offered in housing, infrastructure and steel industry hence could not be absorbed by the market.

However, buying interest at the counters of IPCL, MRPL and BPCL helped these counters register substantial recovery.