Key moments from Nirmala Sitharaman’s budget speech that moved the stock market

• Benchmark index Sensex closed higher by 1.5% or 800 points after the budget 2022-23.
• The increase in overall capital expenditure by 35% from the last year was a big positive for the infrastructure sector.
• Here is how the market reacted to the budget developments and why markets, especially bank stocks slipped significantly after the speech.

Sensex plunged sharply right after the budget speech, led by banking stocks, because there was a sell-off in the bond markets too.

“As the supply of money in the economy shrinks, interest rates tend to go up, which is what people are worried about because if the government borrows so much then interest rates will go up,” said Rajamani Venkataraman, managing director and executive director at IIFL Finance in a conversation with Business Insider.