Stock markets recover post 400 pt crash after Union Budget

Post the presentation of Union Budget proposals for 2018-19 in Parliament on Thursday, the Sensex tanked by 438.79 points. The Nifty also fell as 10 percent Capital Gain Tax was introduced on equity in the Union Budget 2018.

The markets, however, rallied in green at the Opening Bell. The BSE Sensex rose initially beyond the 36,100-level, while the NSE Nifty rose past the 11,050-level.

Finance Minister Arun Jaitley announced a reduction in corporate tax for companies with turnover upto Rs. 250 crores to 25 percent.

Jaitley also revised the fiscal deficit at 3.5 percent of Gross Domestic Product (GDP) for 2017-18 and projected 2018-19 deficit at 3.3 percent of GDP.

"Revised fiscal deficit estimate for 2017-18 is 3.5 percent of GDP, fiscal deficit of 3.3 percent expected for 2018-19. GST revenue for only 11 months, instead of the usual 12 months, is 21.5 lakh crore. Tax buoyancy for 2017-18 is at 2.11 percent. Number of tax payers has increased from 6.47 lakh crores to 8.27 lakh crores," Arun Jaitley announced in his Budget speech.

The minister announced the disinvestment target at Rs. 80,000 crore for FY19.

At the time of filing this report, Sensex was up 80.47 points at 36045.49. Nifty too was up by 22.90 points at 11050.60.