Budget unlikely to fire market or the mood: Citigroup

New Delhi: The budget is not likely to "fire" the market or the mood, Citigroup said in a research report, maintaining a positive view on India with an year-end Sensex target of 27,200.

The global financial services major said the budget seeks fiscal consolidation but is cautious in its approach as it focuses on process rather than pushing the boundaries.

"This will keep India positioned and in play for upsides, but the budget is unlikely to fire the market or the mood," Citigroup said in a research note.

According to the global brokerage firm, the budget lacks growth impulses and is not likely to spur economic or market momentum.

The equity market will need a more bottom-up earnings / growth uptick to respond to what should be a stable top-down India, the report said maintaining a positive view on the country, with a 27,200 December 2016 Sensex target.

Post budget, the 30-share benchmark index Sensex closed down 152 points at 23,002. Intra-day, it tanked nearly 660 points on February 29.

It bounced back and was at 23,509.81, higher by 507.81 points in morning trade on BSE.

The report noted that the budget has taken a decisive call on fiscal consolidation as it stayed on track with a 3.5 per cent target. "The rating agencies and RBI should like this," the report added.

In February 2 policy review meet, RBI governor Raghuram Rajan left the key interest rates unchanged citing inflation risks and growth concerns, while pegging further easing of monetary policy on government's budget proposals.

"The budget presents a credible fiscal consolidation plan despite strong headwinds which should create the space for some monetary easing," Citigroup noted in a separate report.