Stocks of Capital Goods firms rise on Budget proposals

Stocks of companies in the Capital Goods business today gained as much as 3% after the Union Budget proposed to allow deductions on investments in plants and machinery.

Sadbhav Engineering rose by 2.57%, while Praj Industries moved up by 1.11%, Jindal Saw (1.35%), BHEL (0.70%), WELCORP (0.94%) and Thermax (0.88%).

The BSE capital goods index was trading at 9,510.62, up 0.05%.

The Budget 2013-14, presented by Finance Minister P Chidambaram, proposed that a company investing Rs 100 crore or more in plant and machinery from April 1, 2013 to March 31, 2015 will be allowed 15% investment deduction allowance apart from depreciation.

Meanwhile, paring early gains, the BSE benchmark Sensex was quoting at 19,134.38, down 18.03 points at 1240 hrs.