Markets extend gains; Nifty opens above 8,950

Axis Bank, L&T, NTPC, BHEL and Hindalco are top five Sensex gainers

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Markets have started the session on a higher note after the Union Budget tabled by Finance Minister Arun Jaitley reduced corporate tax and announced a timeline to implement the General Sales Tax. The Budget laid thrust on infrastructure growth and also plans to bring down the fiscal deficit to 3% in three years.

By 9:25, the Sensex was higher by 99 points at 29,461 and the Nifty has gained 30 points at 8,931.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 614.03 crore on Saturday, as per provisional data. Domestic institutional investors (DIIs) sold shares worth a net Rs 740.74 crore on Saturday, as per provisional data.

Trading in stock market would also be influenced by investment trend by overseas investors, movement of rupee against the dollar and oil price. Stock markets would remain close on Friday for Holi.

With the Union Budget event out of the way, markets are likely to look forward to monetary policy easing measures and corporate developments.

GLOBAL MARKETS

Activity in China's factory sector edged up to a seven-month high in February but export orders shrank and deflationary pressures persisted, a private business survey showed on Monday, underlying economic fragility that may need more policy support.

China's central bank cut interest rates on Saturday, just days before the annual meeting of the country's parliament, in the latest effort to support the world's second-largest economy as its momentum slows.

The final HSBC/Markit Purchasing Managers' Index (PMI) climbed to 50.7 in February - the strongest level since July - from 49.7 in January, as overall new orders picked up.

SECTORS & STOCKS

BSE Capital Goods index has surged by over 1.5% followed by counters like Banks, Oil & gas and Power, all gaining by 1% each. However, BSE Consumer Durables and FMCG index has dipped by 1% each.

The top gainers on the Sensex are Axis Bank, L&T, NTPC, BHEL and Hindalco, all surging between 1-4%.

Axis Bank has edged higher after the Budget proposal would favour select private sector lenders who will now be able to raise additional money from foreign institutional investors.

The Budget has given a push to infrastructure and the huge expenditure planned is a welcome move for the sector. L&T and BHEL has gained nearly 2%.

Shares of PSU OMCs are trading higher after the companies announced increase in petrol and diesel prices with effect from midnight of 28 February 2015/1 March 2015. IOC, BPCL, HPCL have gained over 1%.

On the losing side, ITC has slipped nearly 2%.  The finance minister proposed to some changes in excise duty on cigarettes. Excise duty on cigarettes is hiked by 25% for cigarettes of length not exceeding 65 mm and by 15% for cigarettes of other lengths. Similar increases are proposed on cigars, cheroots and cigarillos.