Volatility ruled the roost in the market as key benchmark indices bounced back to hit fresh intraday high in afternoon trade as Finance Minster Arun Jaitley made a number of announcements in his speech while presenting Union Budget 2014-15 in parliament. The barometer index, the S&P BSE Sensex, Sensex was up 178.02 points or 0.70%, up about 506 points from the day's low and off close to 66 points from the day's high. The market breadth indicating the overall health of the market was negative.
India's largest cigarette maker by sales ITC rose despite the Finance Minister doubling excise duty on cigarettes to 22%. Footwear stocks were in demand after Finance Minister proposed to cut excise duty to 6% from 12% on footwear.
The Finance Minster said the government is aiming sustained growth of 7-8% in economy in next 3-4 years. Jaitley announced increase in ceiling on foreign investment in the defence and insurance sectors. The finance minister said he accepts target of 4.1% of GDP for fiscal deficit 2014/15 which was set by the previous government in the interim budget. The government is aiming fiscal deficit of 3% in FY 2017. He said the government has to undertake bold steps to spur growth of economy.
Jaitley said the government aims to approve Goods and Services tax by the end of this year. Jaitley said the government will not change rules on retrospective taxation. The government will constitute expenditure management commission, he added. He said the government will review Direct Tax Code. Jaitley said there will be no change ni s to the direct tax rates. He also said that the 3% education cess will continue. Jaitley said the government will extends 5% withholding tax on corporate bonds till 30 June 2017.
At 13:25 IST, the S&P BSE Sensex was up 178.02 points or 0.70% to 25,622.83. The index gained 244.48 points at the day's high of 25689.29 in afternoon trade. The index shed 327.81 points at the day's low of 25,117 in early afternoon trade, its lowest level since 27 June 2014.
The CNX Nifty was up 51.55 points or 0.68% at 7,636.55. The index hit a high of 7,655.75 in intraday trade. The index hit a low of 7,479.05 in intraday trade, its lowest level since 23 June 2014.
More From This Section
The market breadth indicating the overall health of the market was negative. On BSE, 1,358 shares declined and 1,249 shares rose. A total of 91 shares were unchanged.
The BSE Mid-Cap index was up 0.69%. The BSE Small-Cap index was up 0.49%. Both these indices underperformed the Sensex.
Among the 30 Sensex shares, 23 rose and the remaining shares declined. Tata Power (up 4.28%), Hindalco Industries (up 3.28%), Coal India (up 2.05%), Tata Steel (up 1.88%), Sun Pharmaceutical Industries (up 1.43%), NTPC (up 1.23%), Axis Bank (up 1.31%) and ICICI Bank (up 1.20%), edged higher from the Sensex pack.
Bharti Airtel (down 2.5%), TCS (down 0.94%), Bajaj Auto (down 0.57%), Hero MotoCorp (down 0.52%), Reliance Industries (down 0.24%), Mahindra & Mahindra (down 0.24%) and Dr Reddy's Laboratories (down 0.13%), edged lower from the Sensex pack.
India's largest cigarette maker by sales ITC was up 0.85% at Rs 344.30. The stock hit a high of Rs 348 and a low of Rs 337.25. The Finance Minister doubled excise duty on cigarettes to 22%.
Footwear stocks were in demand after Finance Minister proposed to cut excise duty to 6% from 12% on footwear. Bata India (up 4.33%), Liberty Shoes (up 3.85%) and Relaxo Footwear (up 3.44%), edged higher.
Powered by Capital Market - Live News