Key benchmark indices bounced back after hitting fresh intraday low in afternoon trade as bargain hunting emerged at lower levels. At 13:20 IST, the barometer index, the S&P BSE Sensex, was up 74.11 points or 0.21% at 36,039.13. The Nifty 50 index was up 19.90 points or 0.18% at 11,047.60. The Sensex regained the psychological 36,000 mark after sliding below that level in afternoon trade. The Nifty retrieved the psychological 11,000 mark after sliding below that level in afternoon trade.
Shares witnessed sharp selling earlier in the day after the Finance Minister levied long-term capital gains tax of 10% for equity gains of over Rs 1 lakh.
In his Union Budget speech for the financial year 2018-19, Finance Minister, Arun Jaitley 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.
Fiscal deficit will touch 3.5% this year as against the targeted 3.2%. Will target 3.3% in FY 2019. The government has set a divestment target at Rs 80,000 crore for FY 2019, said Jaitley.
Jaitley proposed to cut corporate tax to 25% for firms upto Rs 250 crore annual turnover. Tax rate remained unchanged for individuals. Customs duty on mobile phones was raised to 20% from 15%. Custom duty on some mobile and TV parts was increased to 15%.
In 2016-17, 85 lakh new tax payers joined the system. This is a rise from 66.26 lakh in the preceding years. The total tax payers have increased from 6.47 lakh crore to 8.27 lakh crores, Arun Jaitley said.
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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 0.43%, underperforming the Sensex. The BSE Small-Cap index was up 0.22%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,371 shares fell and 1,247 shares rose. A total of 146 shares were unchanged.
Shares of four healthcare companies rose after the finance minister in the budget announced Flagship National Healthcare protection scheme. Healthcare Global Enterprises, Shalby, Apollo Hospitals Enterprise and Kovai Medical Center and Hospital rose by 0.01% to 3.4%.
Finance Minister announced Aayushman Bharat programme under which 1.5 lakh centres will be set up to provide health facilities closer to home. Rs 1200 crore will be allocated for this programme
The government announced Flagship National Healthcare protection scheme, with approximately 50 crore beneficiaries. Up to Rs 5 lakh per family per year for secondary and tertiary care hospitalization will be provided. It is claimed to be the world's largest government-funded healthcare programme.
Universal health coverage will be expanded after seeing the performance of the scheme. Rs 600 crore is allocated for tuberculosis patients, at the rate Rs 500 per month during the course of their treatment. Jaitley announced setting up of one medical college for every three parliamentary constituencies, with 24 New government medical colleges also being envisioned. Government also will work on upgrading hospitals to medical colleges.
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