Benchmark indices have trimmed some of the post-budget 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 markets.
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. Budget 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 Budget 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.
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.
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%