India’s stocks plummeted after the nation’s budget forecast that the 2009/10 fiscal deficit was set to expand by more than expected to 6.8 per cent of GDP.

The Sensex fell by 5.8 per cent to 14,043.40 after the much-awaited finance bill failed to meet expectations. A lack of fiscal consolidation measures also disappointed investors, who were hoping for structural reforms in pensions, insurance and foreign direct investment.