Key benchmark indices retained positive zone in early afternoon trade after the Finance Minister P Chidambaram said fiscal deficit will be contained at 4.6% of GDP for the year ending 31 March 2014 (2013/14) and the current account deficit (CAD) will be contained at $45 billion in 2013/14. The barometer index, the S&P BSE Sensex, was up 60.39 points or 0.3%, off close to 55 points from the day's high and up about 90 points from the day's low. The market breadth, indicating the overall health of the market was negative.
Auto stocks rose after the finance minister reduced excise duty on cars, sports utility vehicles (SUVs) and two wheelers. Some PSU stocks rose after the finance minister said PSUs are set to achieve record capital expenditure of Rs 257645 crore in 2013-14. Shares of rice companies declined after the finance minister announced service tax relief for rice companies.
Finance Minister P Chidambaram said fiscal deficit will be contained at 4.6% of GDP for the year ending 31 March 2014 (2013/14). He added that current account deficit (CAD) will be contained at $45 billion in 2013/14. He said that the government and the RBI acted in tandem to curtail inflation. He added that India is not facing a ratings downgrade from global credit rating agencies. The government will not do anything that will affect the foundation of India's economy, he said. India's challenges are common to all emerging economies, he added.
India's merchandise exports are projected to expand 6.4% to $326 billion in 2013/14. Government has pegged investment rate at 34.8% and saving rate at 30.1%. Manufacturing sector is not seeing an uptick, the Finance Minister said.
GDP growth in third and fourth quarters of FY 2014 will be at least 5.2% and FY 2014 growth rate will be 4.9%, the Finance Minister said. Chidambaram said that $15 billion will be added to foreign exchange reserves by the end of the fiscal year. Declining fiscal deficit, moderation of CAD, stable exchange rate and increase in project implementation is a result of hardwork, he said.
The government will allocate Rs 2.24 lakh crore to defence in 2014/15, up 10% year on year. The government will provide capital infusion of Rs 11200 crore in state-run banks in 2014/15. Total spending on food, fertiliser and fuel subsidies will be at Rs 2.5 lakh crore in 2014/15.
Chidambaram said there is need to bring down fiscal deficit to 3% of GDP by 2016/17. He said there are no major changes in tax rates in the interim budget. The finance minister cut excise duty on cars, sports utility vehicles (SUVs) and two wheelers.
At 12:20 IST, the S&P BSE Sensex was up 60.39 points or 0.3% to 20,427.21. The index jumped 114.94 points at the day's high of 20,481.76 in early trade, its highest level since 13 February 2014. The index fell 27.87 points at the day's low of 20,338.95 in mid-morning trade.
The CNX Nifty was up 19.70 points or 0.33% to 6,068.05. The index hit a high of 6,079.35 in intraday trade, its highest level since 13 February 2014. The index hit a low of 6,038.30 in intraday trade.
The market breadth, indicating the overall health of the market was negative. On BSE, 1,086 shares dropped and 1,039 rose. A total of 144 shares were unchanged.
Among the 30-share Sensex pack, 22 stocks rose and rest fell. Tata Power Company (up 4.2%), Dr. Reddy's Laboratories (up 2.03%) and HDFC (up 1.43%) edged higher from the Sensex pack.
Shares of rice companies declined after the finance minister announced service tax relief for rice companies. LT Foods and Kohinoor Foods fell by 0.29% to 0.76%. KRBL rose 0.77%.
PSU bank stocks gained. Canara Bank, State Bank of India and Union Bank of India gained 0.16% to 0.82%. Bank of India, Bank of Baroda and Punjab National Bank fell 0.19% to 0.23%.
Auto stocks rose after the finance minister reduced excise duty on cars, sports utility vehicles (SUVs) and two wheelers. M&M (up 0.17%), Maruti Suzuki India (up 0.14%), Ashok Leyland (up 0.96%), Hero MotoCorp and TVS Motor Company (up 1.25%) gained. Tata Motors (down 0.72%) and Bajaj Auto (Down 1.29%) declined.
Powered by Capital Market - Live News
