The 30-share Sensex ended down 71 points at 26,710 and the 50-share Nifty lost 38 points to close at 8,030.
In the near term, the key driver will still be the government's fiscal spending.
Banks cannot shirk their responsibility in cases of frauds.
'Prime Minister Modi's message from Tuesday's meeting with industrialists was loud and clear: stand up India, stand by start-ups, take risk and invest,' says CII chief Sumit Mazumder.
Raghuram Rajan rejected the argument that inflation has come down largely because of "good luck" stemming from low oil prices.
The 30-share Sensex closed up 34 points at 27,831 and the 50-share Nifty ended up 15 points at 8,356.
The Finance Minsiter says country requires 'a larger opening out in more sectors, stability of policy and tax regime'
Saurabh Mukherjea, CEO, Ambit Capital, says he is advising clients to either take a genuinely long-term view on stocks or diversify the portfolio with stocks, bonds and gold for those with a short-term view.
'The big elephant in the room is our misguided view about the rupee.' 'India is scared that if our currency appreciates, who will buy from us. But a breakout is inevitable.'
'LIC's proposed investment will come out of what is technically called the 'policyholders funds'.' 'As the name implies, these monies belong to policyholders; that is, you, me and 25 crore others who have taken a total of 30 crore policies from LIC.' 'It is not the government's or LIC's money to play poker with,' says S Muralidharan, former managing director, BNP Paribas.
Devanik Saha wonders if saffronisation of India is on the rise
Markets extended gains led by financials and capital goods shares coupled with a rebound in IT shares.
Ironically, bad loans and non-performing assets are on the rise in public sector banks in India, say sector watchers.
'Lending to Mr Mallya was the bankers' season ticket to corridors of power and glamour. Borrowing from them was like a favour Mallya did to them,' says Shekhar Gupta.
The first was wholesale funded banks and non-bank finance companies.
Mark Mobius, executive chairman, Templeton Emerging Markets Group, is positive on India and believes the Indian economy is on a strong footing
Banks in India must have a modern approach, suggests a panel comprising of banking bigwigs.
Finance minister Arun Jaitley has delivered a Arun Jaitley delivered a bold, far sighted budget
The Bharatiya Janata Party regime will have to make good on this election slogan to restore state-owned banks to health, says Rajiv Lall.
'There is no difference between the earlier government and the present government.' 'They are all following the economic policy based on the Chicago School of thought.' 'This school of thought says the government should have very little role in governing the country and the majority of the work should be handed over to the private sector.' 'This has not succeeded in the US.' 'Yet, it is being tried here by people like Arvind Subramaniam, Arvind Panagariya, Urjit Patel and Raghuram Rajan.'
'The entire system acted as cheerleaders to Vijay Mallya. The RBI failed, the banks failed, the auditors of the banks and Mallya failed.'
'These are only passing clouds. The banking industry is a century-old industry and this is not the first time it is going through such a crisis.' 'When the economy revives, those companies that are in the infrastructure fields will also get revived.' 'After all, a lot of money has gone into creating assets like power projects and roads, so you can't say money has been wasted.'
From Kudankulam to the Land Bill, the author takes the Twitter route to capture the infra action of 2013.
Financial numbers can sometimes paint a rosy picture because of changes in the accounting policy or a one-time income.
'Swachh Bharat Cess imposed last year should be made broad-based.' 'Budget should be predominantly economy/ business-oriented and problem-solving rather than political consideration-based.'
Hence, the claims by the Government that this will end the menace of black money and corruption are simply outlandish. Also, the simultaneous introduction of Rs 2,000 note undermines their claim and it simply does not fit the storyline of an attack on black money and corruption.
We're behaving like frogs in warm water. We swim around untroubled, cooled by our faith in Indian liberal democracy. We are blind to the bubbles popping around us, the bubbles warning of fundamental changes, says Mihir S Sharma.
In an hour-long chat on rediff.com on Thursday, A K Prabhakar, senior VP and Head - Equity Research (Retail), Anand Rathi Financial Services Ltd, answered some important questions on the market.
Eminent business journalist and author Tamal Bandyopadhyay discussed Budget with rediff.com readers on Tuesday.
Keep exit plans handy, D-day could be the second week of August, writes Sonali Ranade in Market Notes.
The industry's reactions to the Budget have been mixed.
The dollar is king in an intermediate correction, says Sonali Ranade
