Is the Govt becoming a puppet

The union budget delivered by our babu moshai Pranab da has created quite a flutter in the past week. The budget had a lot to ooomph for the aam aadmi like sops to farmers on power, seeds and fertilizers, increase in NREGA pay and the unvelievable 2 rs a kg rice. But inspite of eliminating the FBT, huge increase in infrastructure spending, a few minor changes in the tax structure and the larger idea of increasing the purchasing power of the people, it failed to appease the industrywallahs and their impulsive disapproval was evident in the ensuing market crash.
One major reason which came to light was the fact that the minister did not visibly ride on the disinvestment wagon, something promised in the 100 day agenda read by the president. This triggered heated debates on news channels with the oppostition calling the budget a complete failure and the govt a bunch of cheats. Although the FM later clarified on various forums that the budget speech was just a introduction of what was to follow during the year and that the govt was committed to controlled disinvestment, it was of no avail.
Disinvestment was cited as the only option to reduce the fiscal deficit of the nation. Though it is important, I believe strengthening the economy and exports as such can also help our cause.

Following the release of the entire budget document, which mentioned the govt planned to reduce deficit by 1 and 1.5% in the next couple of yearsthrough disinvestment, there were charges as to why this was not mentioned in the speech. The belief was that its mention could have boosted the markets.
In the subsequent days the markets behaved indecisively. Finally today, the FM was forced to lay out a plan of placing several PSUs under the hammer very soon and this saw the markets rally by 450 points.
The larger issue here is: are the govt policies being governed by bullies like the FIIs and the CII. Is the govt a puppet in their hands. Over the past year's recession we have seen that they do bear a significant clout on Dalal Street and with the day to day swings of the sensex being seen as the sole barometer of the economy, is the govt being forced to bow down to their wishes. The FIIs seem to be bullying the govt with their landslide sellling and huge buying which follows declarations propitious and adverse to their interests respectively.
Disinvestment is no doubt a huge boom. But should it be forced upon us in this manner. Should the govt be coerced into selling stake in even the most profitable of PSUs to foreign companies? We are hearing of stake being sold in NTPC and some others whose have values of 25K per share. I hope the domestic drivers of the economy and the markets take notice and make themselves a little more inert to pecuniary intersts of the foreign lands.