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Key benchmarks hit fresh intraday low

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Capital Market
Last Updated : Feb 01 2018 | 12:31 PM IST

A bout of volatility was witnessed as key benchmark indices reversed intraday gains and hit fresh intraday low in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex, was down 84.55 points or 0.24% at 35,880.47. The Nifty 50 index was down 17.60 points or 0.16% at 11,010.10. The Sensex fell below the psychological 36,000 mark after opening above that level. The Nifty was trading above the psychological 11,000 mark.

Finance Minister, Arun Jaitley started his Union Budget speech for the financial year 2018-19 in parliament at 11:00 IST today, 1 February 2018. The Finance Minister said that India is poised to become the fifth largest economy very soon. He added that India's GDP growth is seen at 7.2% to 7.5% in the second half of FY2018. In FY2019, the government has divestment target of Rs 80000 crore, he said.

The finance minister has proposed to set up a dedicated affordable housing fund. He also proposed to raise the free cooking gas target to eight crore poor households. He also proposed to increase spending on rural sanitation.

With demonetisation, the quantum of cash currency in circulation and increased tax base and has also help improve the digitalization of our country, said Arun Jaitley. He also added that Foreign direct investment has gone up, while the GDP at 6.3% is a signal of a turnaround of the economy. He added that exports are expected to grow at 15% in 2018-19.

Among secondary barometers, the BSE Mid-Cap index was down 0.49%, underperforming the Sensex. The BSE Small-Cap index was up 0.18%, outperforming the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,380 shares rose and 1,140 shares fell. A total of 151 shares were unchanged.

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Four stocks of education related companies rose after the finance minister laid emphasis on the education in the budget and announced sops for the sector. MT Educare, NIIT, Zee Learn and Carrer Point rose by 0.56% to 2.62%. Educomp Solutions, and Aptech fell 0.97% to 3.02%.

Finance Minister Arun Jaitley in its budget speech said that the government will initiate integrated B.Ed programme for teachers, to improve quality of teachers. Government has alloted Rs 9975 crore for social security schemes. Government to invest Rs 100000 crore in development of premium education infrastructure over next four years, he added. Government to focus on health, education & social protection. The government to use technology to improve education from 'blackboard to digital board", he said. The government proposes revitalising infrastructure, opening schools for the ST populations.

IT stocks traded mixed after the finance minister Arun Jaitley in his Budget speech said that technology will be the biggest driver in improving the quality of education. TCS (up 1.27%), HCL Technologies (up 0.6%), Persistent Systems (up 0.06%) and Tech Mahindra (up 0.03%) edged higher. Infosys (down 1.42%), Wipro (down 0.13%) and Oracle Financial Services Software (down 0.06%) edged lower.

Jaitley, in his Budget speech for FY 2019, said that the government proposes to increase the digital intensity in education and move gradually from blackboard to digital board.

Shares of two food processing companies rose after the finance minister Arun Jaitley in the budget 2018-19 doubled allocation towards the sector. Avanti Feeds (up 8.64%) and Apex Frozen Foods (up 5%) gained.

Finance minister said that food processing sector is growing at 8% per annum and the allocation for the sector has been doubled to Rs 1400 crore in 2018-2019. Finance Minister proposed to extend Kisan credit card to fisheries & animal husbandry farmers.

Infrastructure and road construction stocks advanced after the finance minister Arun Jaitley in his Budget speech said that the government has fast tracked infrastructure projects worth Rs 9.46 lakh crore. IL&FS Transportation Networks (up 4.65%), GVK Power & Infrastructure (up 3.65%), GMR Infrastructure (up 2.76%), HCC (up 2.41%), IVRCL (up 1.69%), IRB Infrastructure Developers (up 1.58%), NBCC (India) (up 3.12%) and NCC (up 1.67%) gained.

Jaitley, in his Budget speech for FY 2019, stated that plans to set up smart city projects worth Rs 20852 crore are in progress. The government has planned 99 smart cities with outlay of Rs 2.04 lakh crore, FM said. It will look to complete 9,000 km of national highways in FY18, he added.

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First Published: Feb 01 2018 | 12:13 PM IST

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