Don’t miss the latest developments in business and finance.

Market breadth turns negative

Image
Capital Market
Last Updated : Feb 01 2020 | 2:16 PM IST
Key benchmark indices continued to trade sideways in a negative territory in mid afternoon trade. Indices continued to witness a dash of volatility on account of ongoing Union Budget. The Nifty continued to hold its 11,930 support zone and traded above.

At 12:50 IST, the S&P BSE Sensex, was down 79.19 points or 0.19% at 40,644.30. The Nifty 50 index was down 20.7 points or 0.17% at 11,941.40.

In the broader market, the S&P BSE Mid-Cap index was up 0.11% while the S&P BSE Small-Cap index was down 0.12%.

The market breadth turned negative. On the BSE, 968 shares rose and 1073 shares fell. A total of 132 shares were unchanged. In Nifty 50 index, 13 stocks advanced while 37 stocks declined.

Union Budget 2020:

FM Nirmala Sitharaman said that government proposes to sell a part of its holding in Life Insurance Corporation of India (LIC) by initial public offer.

In a big announcement, FM Sitharaman informed Parliament during Budget presentation that India's fiscal deficit is now pegged at 3.8% for FY20 and 3.5% in 2021. Nominal GDP growth for FY21 revised to 10%.

More From This Section

FM said that mechanism will be made to address liquidity constraints of NBFCs and Housing finance corporations. Government will offer support by guaranteeing securities floated to provide liquidity for NBFCs.

Sitharaman said that national security is the government's top priority. Wealth creators will be respected in the country, she indicated. FM reassured taxpayers about commitment to eliminate tax harassment. "We wish to enshrine in the statutes a taxpayer charter through this Budget. Our govt remains committed to taking measures to ensure that our taxpayers are free from tax harassment of any kind," FM said.

FM asssured that robust mechanism is in place to monitor health of all schedule commercial banks and depositors money is absolutely safe. Deposit Insurance and Credit Guarantee Corporation has been permitted to increase deposit insurance coverage to Rs 5 lakh per depositor from Rs 1 lakh.

FM proposed Rs 27,300 crore for the development and promotion of industry and commerce in 2020-21. "We wish to turn every district into an export house," said FM. India will host G-20 presidency in the year 2022; Rs 100 crore allocated for preparation.

Government is fully committed to supporting new UTs of J&K and Ladakh. Announced an allocation of Rs 30,757 crore for 2020-21 for Jammu and Kashmir and Rs 5,958 crores for Ladakh.

FM proposed to expand national gas grid to 27,000 km from 16,200 km. 2,500 crore rupees to be allocated for tourism promotion in 2020-21. Fibre-to-Home connections under Bharat Net will be provided to 1 lakh gram panchayats this year itself, 6000 crore rupees provided for Bharat Net. Over 6 lakh Anganwadi workers have been equipped with smartphones to upload the nutrition status of 10 crore households, said FM. The government proposed discoms to replace conventional meters with smart pre-paid meters. An allocation of Rs 8,000 crore was announced for National Mission on Quantum Computing and Technology.

85,000 crore rupees allocated for Scheduled Castes and Other Backward Classes in 2020-21. 53,700 crore rupees for Scheduled Tribes. Enhanced allocation of 9,500 crore rupees for Senior citizens and Divyangs. 28,600 crore rupees provided for programmes which are specific to women. 35,600 crore rupees for nutrition-related programmes in 2020-21. "Beti Bachao Beti Padhao" has given tremendous results, Gross Enrolment Ratio is now higher for girls than for boys at all levels.

5 archaeological sites in Haryana, UP, Assam, Gujarat and Tamil Nadu, to be developed with on-site museums, says FM.

FM Nirmala Sitharaman said that the government is committed to the goal of doubling farmers income by 2022. Government will incentivize farmers to go solar. Pradhan Mantri Kisan Urja Suraksha Utthan Mahabhiyan (PM KUSUM) will be expanded to provide 20 lakh farmers in setting up standalone solar pumps. Large solar power capacity to be set up alongside rail tracks, on land owned by Railways. FM announced Rs 20,000 crore for the renewable energy sector.

FM said that the fundamentals of the economy are strong. Central government's debt has come down to 48.7% in March 2019 from 52.2% in March 2014.

16 lakh new taxpayers were added to the system. An average household now saves about 4% of its monthly spend on account of reduced GST, revealed Sitharaman. GST has resulted in efficiency gains in the transport and logistics sector, inspector raj has vanished, it has benefitted Micro, Small & Medium Enterprises (MSME). Consumers have got an annual benefit of 1 lakh crore rupees by GST.

Several steps on formalisation of economy have been taken up. Between 2006-2016 India was able to raise 217 million people out of poverty, said Sitharaman.

Buzzing Index:

Pipe Manufacturing stocks were in demand after FM Nirmala Sitharaman allocated Rs 3.6 lakh crore under Jal Jeevan Scheme for piped water projects. Finolex Industries (up 3.18%), Prince Pipes & Fittings (up 0.31%), Captain Pipes (up 1.66%), Srikalahasthi Pipes (up 2.55%), Indian Hume Pipes (up 1.17%), Premier Pipes (up 4.97%) were top gainers in pipe segment.

Shares of four stocks catering to education sector rose after Finance Minister Nirmala Sitharaman gave impetus to sector in the Union Budget 2020-21. Navneet Education (up 2.33%), Zee Learn (up 2.19%), Career Point (up 1.98%) and MT Educare (up 1.97%) edged higher. Union finance minister Nirmala Sitharaman while presenting the Union Budget 2020-21 in Parliament today, 1 February 2020 announced Rs 99,300 crore outlay for education sector in 2020-21 and Rs 3,000 crore for skill development. New Education Policy would be announced soon. With the largest working population, government is taking steps to ensure education for all, she added.

Shares of aquaculture companies rose after the Finance Minister Nirmala Sitharaman said that government will increase the country's fish production capacity. The Finance Minister in the Union Budget 2020 said that India's production to be raised to 20 million tones. She added that framework for development, management and conservation of marine fishery and 377 sagar mitras and 500 fish farmer organizations will be added to help youth work in fish farming sector. Zeal Aqua (up 14.4%), Waterbase (up 5.58%), Apex Frozen (up 4.55%), Avanti Feeds (up 2.93%) and Coastal Corp (up 2.66%) were top gainers in aquaculture segment.

Powered by Capital Market - Live News

Also Read

First Published: Feb 01 2020 | 12:53 PM IST

Next Story