Markets extend gains post Budget announcements

Markets extended gains after the Finance Minister Arun Jaitley in his maiden Budget speech today announced proposals to put the economy back on the growth track.

At 1:55PM, the 30-share Sensex was up 458 points at 25,903 and the 50-share Nifty was up 142 points at 7,727.

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(Updated a 1:20PM)

Markets staged a recovery in noon trades on Thursday as stock specific action was seen following the Budget proposals presented by Finance Minister Arun Jaitley

At 1:20PM the 30-share Sensex was up 98 points at 25,543 and the 50-share Nifty was up 28 points at 7,613.

The Indian rupee was trading lower at Rs 59.88 compared to the previous close of Rs 59.75.

On the personal taxation front, the personal income tax has been hiked to Rs 2,50,000 from Rs 2,00,000 while for senior citizens the tax limit has been hiked to Rs 3,00,000 from Rs 2,50,000. The Budget has also proposed hike in investment under 80C to Rs 1,50,000 from Rs 1,00,000 and exemption on self occupied property to Rs 2,00,000 from Rs 1,80,000 earlier. The PPF limit has also been hiked to Rs 1,50,000 from Rs 1,00,000 earlier.

The recovery was led by gains in Infosys, ICICI Bank, ONGC, HDFC, L&T contributing the most to the Sensex gains.

However, TCS, Bharti Airtel, Reliance Ind and SBI were the top Sensex gainers.

Realty, Power and Capital Goods indices were the top sectoral gainers on the BSE.

Power space is witnessing fresh buying after Arun Jaitley decided to spend Rs 500 crores to boost rural power infrastructure. He added  New & renewable energy deserves high priority ultra modern power projects should be taken up in Rajasthan,Tamil Nadu, Ladakh worth Rs 500 crores. Rs 100 crore has also been allotted for thermal power technology NTPC and Tata Power have surged 1.45 and 4%, each 

Finance Minister Arun Jaitley listed out various plans for the infrastructure sector for the fiscal year 2014-15. He stressed on an urgent need to revive the infrastructure and need for Public Private Partnership (PPP) to develop world class convention facility. Hence, Capital goods shares such as L&T and BHEL gained 1% each

Arun Jaitley asserted that banking needs in the country need to be strengthened. He proposed that Rs 2,40,000 crore need to be infused in the banking sector by 2018 to meet global Basel III norms. A greater autonomy and large capital infusion in the public sector banks was also proposed. Hence the banking space witnesses an upsurge. Axis Bank, HDFC Twins, ICICI Bank and SBI gained between 1.3-2.7%

Meanwhile stock specific section was seen following the Budget proposals related to the sectors.

In the broader market, the BSE Mid-cap index was up 0.6% and the Small-cap index wsa up 0.4%.

Market breadth was weak with 1,381 losers and 1,220 gainers on the BSE.