Sensex ends 158 pts up on Budget day after 2000 pts-swing, Nifty near 17600

CLOSING BELL: Broader markets were unable to recover from the intra-day lows with BSE Midcap and Smallcap indices dropping up to 1 per cent

4:10 PM

Expert comment: Budget is a 'Panch..Amrit' budget, balancing growth with reasonable prudence

The budget is a 'Panch..Amrit' budget, balancing growth with reasonable prudence. It has the potential to boost consumption across the pyramid, with direct tax benefits at both the lower and higher ends, including an increase in rebates at the lowest tax slab and a reduction in the tax rate at the highest tax slab. It also features targeted rural spending through food grain schemes.

Views expressed by Trideep Bhattacharya,  CIO-Equities, Edelweiss MF

4:07 PM

Expert comment: What is bad for the insurance sector could result in being better for the MF sector

What is bad for the insurance industry in the budget presented today by the finance minister (FM) Nirmala Sitharaman, will actually act as a blessing in disguise for the mutual fund (MF) industry. A lot of mis-selling was happening in the insurance industry Where investors were sold a packaged investment cum insurance product as endowment scheme or some other schemes, where premium outlay for investors in a financial year used to be Rs 5 lakh and above. So, they were actually sold some investment product with some insurance part in it. Now, with the tax advantage of such schemes going away, such products will become less lucrative for investors and therefore, we believe that large part of these money which would have otherwise have been invested in insurance, will now come either to MFs or fixed deposits (FDs) or Equities. So, this will be the indirect implied benefit, so what is bad for the insurance sector could result in being better for the MF sector.

Views expressed by Jimeet Modi, Founder & CEO, SAMCO Group

4:01 PM

MARKET COMMENT: Vinod Nair, Head of Research at Geojit Financial Services

A well-tuned budget with strong  emphasis on consumption and capex has lifted optimism in the market; however, volatility sparked in the latter half as focus shifted back to the Adani saga and FOMC meeting. Life insurance players witnessed heavy selling as the budget pushed for the new tax regime, making insurance products less appealing as a tax-saving tool.

3:58 PM

Expert comment: Mutual funds would benefit from change in taxation on insurance companies

I would say the budget was very credible as the numbers presented did not throw up any negative surprises. It shows a clear focus on increasing capital expenditure which shows commitment to drive the future growth. Also, focus on farm economy will lift rural growth. The steps taken to rationalize taxes for individuals and high tax payers is in the right direction and will boost consumption which in my opinion is the need of the hour for the next round of growth. The budget also addressed the ease of doing operation further by giving importance to simplify processes including the current regulatory framework is once again in the right direction to drive new India. Mutual funds would benefit from the change in taxation on insurance companies and change in capital gains limit to buy real estate would augur well for debt funds. Overall, I would rate this budget 10/10.

Views expressed by A.Balasubramanian, MD and CEO of Aditya Birla Sun Life AMC

3:56 PM

Expert comment: New tax regime augurs well for consumption-led growth

Based on the framework of inclusive development and infrastructure play, the Union Budget 2023- 24 has laid the roadmap for a sustainable long-term economic pathway. Continuing on the path of fiscal consolidation, the budget has proposed effective measures for progress with enhanced capital outlay and financial prudence. The infra development will boost private investment and spur employment generation. On the other hand, the various skill development and educational programmes will not only enhance employability but also enhance consumption. The new tax regime also augurs well for consumption-led growth. Focus on green energy adoption and adoption of new-age digital technologies will strengthen the sustainable growth agenda.

Views expressed by Vishal Kampani- Non-executive Vice Chairman, JM Financial

3:52 PM

Gem stocks climb up to 4% after govt boosts measures for lab-grown diamonds

3:49 PM

Auto ancillaries rally after govt pushes for in-house battery manufacturing

3:43 PM

Adani Enterprises, Adani Ports, HDFC Life top Nifty50 laggards

3:41 PM

ICICI Bank, JSW Steel, ITC top Nifty50 leaders

3:39 PM

Broader markets bleed; India VIX drops in red

3:36 PM

Barring Nifty FMCG and Nifty IT, all sectors edge lower

3:35 PM

SENSEX HEATMAP: 16 out of 30 index constituents close in green

3:34 PM

CLOSING BELL: Sensex trims 1,000 pts from day's high, ends at 59,708

3:32 PM

CLOSING BELL: Nifty50 slips below 17,650, down over 50-odd points

3:20 PM

Comment:: Budget 2023 makes bold promises on an all-inclusive growth.

In Budget 2023 FM has made bold and forward-looking promises with strong focus on infrastructure, manufacturing, health, agriculture, green initiatives and inclusive growth. If execution can keep pace and promises can be delivered India is certainly poised for a high level of growth and stability with all countrymen getting benefit. Revamping the credit guarantee scheme and easing KYC with the help of Diggi locker is quite a welcome move for the individual AMS and MSME.

 

- Rajesh N Gupta, Managing Partner, SNG & Partners

3:07 PM

BLOOMBERG: Credit Suisse's private bank halts margin loans on Adani bonds

>> As per a Bloomberg report, Credit Suisse Group AG has stopped accepting bonds of Gautam Adani’s group companies as collateral for margin loans to its private banking clients.

>> This is a sign that scrutiny of the Indian tycoon’s finances is growing after allegations of fraud by Hindenburg Research.

>> The Swiss lender’s private banking arm has assigned a zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electricity Mumbai. 

3:04 PM

Market Check:: Sensex sinks almost 2,000 pts from day's high in intra-day deals

The BSE benchmark index had rallied to a high of 60,773 during the Budget annoucement. However, heavy selling in the last one-hour of trades saw the Sensex slide to a low of 58,817 - down 1,956 points from the day's high.

The Sensex had recouped losses and was almost flat.

2:58 PM

Comment:: Budget 2023 will help India remain amongst fastest growing economies globally

“I believe it is a highly pragmatic and growth-oriented budget which will help India remain amongst fastest growing economies globally. FY23-24 budget is walking the talk and continues Govt focus on 1) bottom end of pyramid with free food grains 2) taxation relief to middle class 3) enhancing Agri credit 4) heightened capex spend with Rs13.7 trillion capex and 5). focus on green energy, energy transition etc. I believe that the budget is targeting inclusive growth with focus on increasing consumption through benefits to middle class and impetus to industry to spur investment for domestic manufacturing and infrastructure development.”

 

- Amisha Vora, Chairperson and MD, Prabhudas Lilladher Group

2:50 PM

Budget 2023 proposals will put India firmly back on the FII's radar, says Andrew Holland

Foreign investors, too, will take a positive view of this given their concerns about global recession and the recent developments back home with respect to the Adani group, which have hurt market sentiment. The change in personal income-tax structure, on the other hand, will also give a boost to consumption as it will give more money in the hands of spenders. READ MORE

2:45 PM

Adani group :: Rout deepens in stocks; Adani Ent, Adani ports, Ambuja Cement worst hit

2:38 PM

Comment: Budget 2023 has rewritten the rules for financilization of savings

The budget when dissected in three realms of Agriculture, Manufacturing and Services sector, it can be seen that it has done maximum for Agriculture and least for Services sector and specially for financial sector; as the budget's inclination towards  New Income Tax regime will reduce incentive to invest in financial products (including MFs’ ELSS, insurance premium etc) or for that matter even the decade old housing sector incentives for interest payments will be the least preferred option. This budget therefore has rewritten the rules for financilization of savings in India which will induce expenditures rather incentivize savings. However the fiscal deficit under control, no big disinvestment targets, no bigger borrowings and thrust on govt capex will keep the bulls happy on the stock markets.

 

- Umesh Kumar Mehta, CIO, SAMCO MF

2:31 PM

Comment: Budget 2023 has delivered on all the expectations very well

An extremely well-balanced budget focussed on growth driven by capital expenditure while giving an adequate push to rural welfare and agriculture. Government borrowing is well-calibrated, and it is a significant positive. The fiscal deficit target of 5.9% indicates a considerable degree of prudence. On top of this, relief to the middle class on the income tax front is the cherry on the cake. At this point, it is difficult to find any shortcomings. The budget has delivered on all the expectations very well. In the short term, we expect the markets to move higher on the back of pro-growth measures announced in the budget and less fear of the government crowding out private investments due to fiscal prudence shown by the government.

 

- B Gopkumar, MD & CEO, Axis Securities

2:22 PM

Comment :: More could have been done for insurance sector

We would have liked to see a few strategic announcements in the Insurance Sector- such as an Increase in FDI to 100%, reduction in Tax rate for Foreign Reinsurance Branches, and introduction of Captives. We were also expecting some Tax concessions such as reduction of GST rate on health & life insurance from 18% to 5%, creating a separate section for Life insurance premium exemptions instead of including it in an already crowded 80C and increase in the maximum deduction for tax benefits from health insurance premiums from Rs 50,000 to Rs 1 lakh under 80 D.

Views by: Praveen Vashishta, Chairman, Howden Insurance Brokers India 

 

 

2:14 PM

Earnings Alert:: Jubilant Foodworks Q3 net dips 35%; stock sheds 4%

Jubilant Foodworks reported a 34.7 per cent drop in Q3FY23 net profit at Rs 119.42 crore as against Rs 713 crore in Q3FY22. Total income was up 10 per cent YoY at Rs 1,326 crore.

2:09 PM

SECTOR CHECK :: PSB Index declines 2.5%, Private banks hold fort

2:02 PM

MARKET CHECK :: Profit booking at higher levels drag Sensex 900 pts off highs

1:58 PM

Budget backs pharma R&D, nursing colleges, skilling in medical devices

A mission will be launched to eliminate sickle cell anaemia in the country by 2047. "It will entail awareness creation, universal screening of 7 crore people in the age group 0 to 40 years in affected tribal areas and counselling through collaborative efforts,” Sitharaman said. READ MORE

1:46 PM

Budget 2023 delivers on all counts; pushes hard on capex, growth, says Madan Sabnavis

Budget 2023 has more or less maintained the ratio of size of the budget to GDP to around 15 per cent. READ MORE

1:44 PM

Comment :: Fiscal prudence continues to prove a strong tailwind for the banking sector

On the frontline, the impossible balance of boosting capital expenditure by 33% but still managing the fiscal prudence FY24 Budget Gap 5.9% of GDP, Retains 6.4% FY23 and Gross borrowing at 15.43 vs exp of 15.77.

 

Concerns of LTCG tweak was also not touched and also gave the sugar high for the equity markets.

Going ahead, in a world which is slowing materially, India’s Capex frontloading likely to keep domestic centric Indian economy. Clear take away from this budget is focus on India (domestic centric focus).

Consumption (on account of higher disposable income) and Capex sectors (capex up by 33%) both will see strong tail wind along with focus on railways, ports & airports and tourism. Fiscal prudence continues to prove a strong tailwind for the banking sector that is only moving towards its long-term valuation bands.

Views by: Azeem Ahmad, Principal Officer & Head PMS , LIC Mutual Fund

 

1:35 PM

ITC hits life-time high, bounces back 11% from day's low on heavy volumes

“National Calamity Contingent Duty (NCCD) on specified cigarettes was last revised three years ago. This is proposed to be revised upwards by about 16 per cent,” Finance Minister Nirmala Sithraman said on Wednesday in her Budget 2023 speech. READ MORE