Mumbai, Jul 22 (IANS): Indian stock markets had touched new highs on the back of political stability as the BJP-led NDA government returned with a full majority in the 2019 General Elections, but the Union Budget 2019-20 has put a damper on it.

In the 12 sessions, post the May 23 general election result which put months of uncertainty to a full stop, the benchmark Sensex advanced nearly 1,000 points but shed over 1,400 points in the comparable period post the Budget.

This left traders, fund managers and regular retail investors frustrated as most were banking on the new government to announce measures to kick-start a slowing economy.

Although the Budget was appreciated for the road map it had to offer, it seemed falling short on measures to boost consumption, while most of all, was the tax on the super-rich which back-fired.

Indian markets responded to the higher tax surcharge on the super-rich affecting over 40 to 50 per cent of the Foreign Institutional Investors (FPIs). On Monday alone, FPIs pulled out Rs 1,916.91 crore worth of equity from Indian markets.

A major driver of the Indian stock market, the FPIs, were in sell mode continuously since July 5 but it further intensified since July 18 after Finance Minister Nirmala Sitharaman made it clear that the super-rich tax is here to stay.

The Sensex has shed over 850 points after she dashed hopes of any roll-back in the proposed tax which roiled the financial markets.

FPIs have pulled Rs 8,392.46 crore in the month of July till date, the highest outflow markets have seen in 2019.