Key indices logged modest gains as finance minister Piyush Goyal presented interim budget. The barometer index, the S&P BSE Sensex, rose 212.74 points or 0.59% at 36,469.43, as per the provisional closing data. The Nifty 50 index rose 62.70 points or 0.58% at 10,893.65, as per the provisional closing data. Intraday volatility was high.
The S&P BSE Mid-Cap index rose 0.56%. The S&P BSE Small-Cap index rose 0.17%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1,203 shares rose and 1,332 shares fell. A total of 142 shares were unchanged.
Presenting the interim budget for 2019-20, Finance Minister Piyush Goyal said the fiscal deficit for the current financial year is expected to be 3.4% of GDP. As per the Budget estimate, the fiscal deficit for 2018-19 was pegged at 3.3%.
Piyush Goyal announced doubling of income tax exemption limit to Rs 5 lakh, raising standard deduction from the current Rs 40,000 to Rs 50,000 and provided concessions on interest income from bank deposits and rent. GST has been continuously reduced, resulting in relief of Rs 80000 crore to consumers, Finance Minister Piyush Goyal said. He claimed that most items of daily use for poor and middle class are now in the 0%-5% tax bracket.
The defence budget was increased for the first time to three lakh crore in 2019-20 for securing borders and to maintain preparedness of highest order and if necessary additional funds will be provided.
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India is poised to become a 5 trillion dollar economy in the next five years and become a 10 trillion dollar economy in the next eight years. Piyush Goyal increased the budgetary allocation for India's flagship rural employment scheme, Mahatma Gandhi National Rural Employment Guarantee scheme. The scheme will get Rs 60000 crore as against Rs 55000 crore rupees promised in the last Budget.
For welfare of farmers and for doubling their income, historic decision taken to increase minimum support price (MSP) by 1.5 times the production cost for all 22 crops, Finance Minister Piyush Goyal said. He also announced a steady income support to help farmers in view of depleting income from agriculture.
To provide an assured income support to the small and marginal farmers, our Government is launching a historic programme namely 'Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN)'. Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs 6,000 per year. This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal instalments of Rs 2,000 each. This programme will be funded by Government of India.
The interim budget was the last one presented by the current NDA government led by Prime Minister Modi, before the 2019 general elections in April. The Budget session of Parliament began yesterday. The session will conclude on 13th of next month.
Maruti Suzuki India rose 4.96% after the company said that its total sales rose 0.2% to 151,721 units in January 2019 over January 2018. Maruti Suzuki India said total domestic sales rose 1.1% to 142,150 units, while total exports fell 11% to 9,571 units in January 2019 over January 2018. The announcement was made during trading hours today, 1 February 2019.
Hero MotoCorp gained 7.74%. The company's net profit fell 4.5% to Rs 769.10 crore on 7.5% increase in net sales to Rs 7,864.82 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 31 January 2019.
State Bank of India (SBI) lost 3.09%. The bank reported net profit of Rs 3954.81 crore in Q3 December 2018 compared with net loss of Rs 2416.37 crore in Q3 December 2017. Total income rose 11.81% to Rs 70,311.84 crore in Q3 December 2018 over Q3 December 2017. The result was announced during trading hours today, 1 February 2019.
Bharti Airtel advanced 1.45%. On a consolidated basis, Bharti Airtel's net profit fell 71.81% to Rs 86.20 crore on 0.99% increase in net sales to Rs 20,519.20 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 31 January 2019.
Yes Bank fell 4.45%. Yes Bank announced after market hours yesterday, 31 January 2019, that Reserve Bank of India (RBI) has approved the appointment of Mr. Ajai Kumar as interim MD & CEO of the bank from 1 February 2019 for one month or till Mr. Ravneet Gill assumes office as MD & CEO, whichever is earlier.
Power Grid Corporation of India rose 1.19%. The company's net profit rose 14.2% to Rs 2,331.17 crore on 12.8% increase in net sales to Rs 8,471.17 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 31 January 2019.
Vedanta slumped 17.82%. On a consolidated basis, Vedanta's net profit fell 21.06% to Rs 1,574 crore on 2.84% decrease in net sales to Rs 23,669 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 31 January 2019.
Overseas, European stocks were trading higher Friday as market participants monitored a flurry of corporate results and key economic reports.
Asian stocks ended mixed even as the latest round of US-China trade talks ended on a positive note, with President Donald Trump saying he was optimistic that the two nations could reach the biggest deal ever made. Trump said on Thursday he will meet with Chinese President Xi Jinping soon to try to seal a comprehensive trade deal. However, no specific plans for the meeting were announced.
A private survey released on Friday suggested that manufacturing in China slowed in January. China's Caixin Manufacturing PMI was 48.3 in January, down from 49.7 in December.
South Korean exports shrank for the second straight month in January weighed by weaker prices for memory chips and petrochemicals. Exports fell 5.8% from a year earlier to $46.35 billion in January, a steeper decline than the prior month's revised 1.3% drop, according to preliminary data from the trade ministry on Friday. Imports also fell 1.7% from a year earlier to $45.02 billion after a revised 1.2% gain in the month before, producing a much narrower trade surplus of $1.34 billion.
US stocks closed mostly higher Thursday led by technology shares after some solid corporate reports. On the data front, the Chicago purchasing managers index for January came in at 56.7, down from 65.4 in December. New home sales in November rose to a seasonally adjusted annual rate of 657,000, up from 562,000 in October.
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