Capital goods stocks inch higher post excise duty cut

Among major announcements in his speech, Finance Minister P Chidambaram announced that the current account deficit for the financial year 2014 will be capped at 4.65% of GDP and FY 14 current account deficit to be capped at $45 bn. Food inflation continues to remain a challenge admitted the finance minister. He added $15 bn of forex reserves were added in FY14. FY14 GDP to be 4.9% seen at 4.9% FY14 Q3 , Q4 GPD growth to be atleast 5.2%, added FM.

The objective of a Vote on Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections.

Finance Minister P. Chidambaram in his interim-budget speech on Monday announced a cut in the excise duty from 12% to 10% for capital goods.

The BSE Capital Goods index inched 0.3% higher to 9459.63 after the announcement. Out of total 21 stocks listed on the index, 8 advanced while 13 declined. Among major gainers were VA Tech Wabag which surged 3% or 18.70 higher to Rs 618, Thermax was up 2.11% at 636 while heavyweight L&T was up 1% at Rs 1002.65.     

Meanwhile, the benchmark Sensex was by 60 points or 0.29%, at 20427mark, and the Nifty gained by 19 points or 0.3% at 6,067.60 level.