Key benchmark indices once again sink in red to hit fresh intraday low. High volatility materialized after Finance Minister Arun Jaitley said that the basic corporate tax rate will be reduced to 25% from 30% over the next four years. The Finance Minister also announced deferring roll out of general anti-tax avoidance rules (GAAR) by two years until 1 April 2017. The Sensex was currently down 90.60 points or 0.31% at 29,129.52. The market breadth indicating the overall health of the market was weak. Jaitley began his budget speech in Lok Sabha at 11:00 IST as he tables Union Budget 2015-16 in parliament.
The Finance Minister said that the credibility of the Indian economy has been re-established in the last 9 months and said that the government is targeting a reduction of fiscal deficit to 3% of GDP in 3 years. The path of fiscal consolidation is on track, he added. Jaitley said that the world is acknowledging that India is rising. Credibility of Indian economy has been re-established, Arun Jaitley said. The Finance Minister said that GDP growth is expected to accelerate to 8% to 8.5% in FY 2015-16 from 7.4% expected in the current year based on new series. Aiming for double-digit growth now seems feasible, he added. Jaitley said that the government is considering upscaling of PSU divestment programme. The government has to aim to making India manufacturing hub, he said. He further said that goods and services (GST) tax is likely to be implemented by April 2016.
Plan expenditure for FY15/16 is pegged at Rs 4.65 lakh crore. The Finance Minister said that the government proposes to introduce a bill on the black money in the current session in the parliament. Jaitley said that the PPP model will be revitalized. He also said that the government will bring comprehensive bankruptcy code
Due to the major event viz. the Budget, stock exchanges are conducting a live trading session today, 28 February 2015, despite it being a Saturday. Trading began at 9:15 IST and will conclude at 15:30 IST.
At 12:55 IST, the S&P BSE Sensex was down 90.60 points or 0.31% at 29,129.52. The index jumped 340.20 points at the day's high of 29,560.32, its highest level since 30 January 2015. The Sensex fell 157.88 points at the day's low of 29,062.24.
The CNX Nifty was down 3.65 points or 0.04% at 8,840.95. The index hit a high of 8,941.10 in intraday trade, its highest level since 30 January 2015. The index hit a low of 8,807.20 in intraday trade.
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The market breadth indicating the overall health of the market was weak. On BSE, 1,488 shares declined and 982 shares gained. A total of 124 shares were unchanged.
The BSE Mid-Cap index was down 85.93 points or 0.79% at 10,725.53. The BSE Small-Cap index was off 93.27 points or 0.82% at 11,226.29. The fall in these two indices was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2509 crore by 12:55 IST, compared with turnover of Rs 1928 crore by 12:15 IST.
Index heavyweight and cigarette major ITC tumbled 8.7% to Rs 360. The stock hit high of Rs 409.70 and low of Rs 359.10 so far during the day. Cigarette markers dropped after the Finance Minister Arun Jaitley in Union Budget 2015-16 today, 28 February 2015 said that excise levy on cigarettes and the compounded levy scheme applicable to pan masala, gutkha and other tobacco products also changed.
Shares of footwear makers Bata India (up 3.45%) and Relaxo Footwear (up 3.85%) rose after Finance Minister Arun Jaitley in Union Budget 2015-16 today, 28 February 2015 said that leather footwear to get 6% excise duty relief.
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