You are here: Home » Budget » News » Markets
Business Standard

Budget Impact: Sensex down nearly 150 points; Nifty hovers near 8,800

The 30-share Sensex was down 143 points at 28,077 and the 50-share Nifty was down 31 points at 8,813

SI Reporter  |  Mumbai 

Benchmark indices have trimmed some of the post-losses helped primarily by the gains in select bank stocks like Axis Bank and ICICI Bank. However, losses in select index heavyweights like ITC and HDFC continue to weigh on the

At 2:24PM, the 30-share Sensex was down 143 points at 28,077 and the 50-share Nifty was down 31 points at 8,813.

Reacting to the proposals, Nandkumar Surti, MD & CEO, JPMorgan AMC said that the emphasis has been on tax simplification, tax compliance and infrastructure spend which is the need of the hour.

"The government has rightly delayed the Fiscal Deficit target by a year given the private sector challenge to spend money on infrastructure. The priorities are very clear. The direct association of increased excise duty to be spend on road infrastructure shows good use of the increased revenue. The emphasis to financial inclusion through micro refinance augurs well for the rural educated. The various social schemes on medical, accident insurance and push to pension schemes is very well balanced. with a good heart - tax the rich which still doesn't pinch, spend on infrastructure, ease of doing business and social spend - all very well intended," he said in a post note..

.


**************
(updated at 13:54 hrs. )
Benchmark indices are trading lower by around 1% each as investors start to react to the announcements made by Finance Minister in the Union Budget which has been tabled in the Parliament today.

At 1:51PM, the 30-share Sensex was down 263 points at 28,956 and the 50-share Nifty was down 62 points at 8,778. .

Read our full coverage on Union Budget.

.

In the broader market, both the BSE Midcap index, and Smallcap index, down 1% each are moving largely in-line with the front-liners. Market breadth in BSE ended negative with 1,705 declines against 833 advances.

Sharing his views on the Union Budget, Debopam Chaudhuri, Vice President- Research & Chief Economist, ZyFin Research said, “A fair budget in our view. Indian governments have always been criticized of cutting down expenditure during the recovery phase, thereby prolonging the path to growth. Mr Jaitley however, did not try to stifle public spending and acknowledged a breach in fiscal deficit targets. However he has ensured through various policies to limit leakages and spend on sectors with high multiplier effects on the economy. We need to first build an exchequer before seeking personal benefits in order to prevent future austerities."

Meanwhile, foreign institutional investors were net buyers in equities to the tune of Rs 1,957 crore on Friday, as per provisional stock exchange data.

BUZZING STOCKS

On the sectoral front, BSE FMCG index is the top loser down over 4% followed by BSE Power, Realty, Consumer Duracles and Capital Goods indices down between 1-3%. On the other hand, BSE Bankex is the top gainer up 1% followed by BSE IT index.

Index heavyweight and Cigarette maker ITC is the top loser down 9% after finance minister proposed to some changes in excise duty on cigarettes.

L&T and BHEL which gained in the previous session son hopes that the budget may include sops to the housing and infrastructure sectors are down in the absence of any prominent reforms and are down between 1-6%.

Power stocks are trading weak. Tata Power and NTPC have lost between 1-3%.

Metal shares are witnessing selling pressure. Hindalco, Sesa Sterlite, Coal India are down 0.4-1%.

On the flip side, technology shares have bounced back and are trading firm post Budget. TCS,

Infosys and Wipro have gained between 0.4-1%.

Axis Bank, HUL, Dr reddy’s Lab, Tata Steel are some of the notable gainers and are up[ between 1-5%

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, February 28 2015. 14:26 IST
RECOMMENDED FOR YOU