MARKET WRAP: Sensex tumbles almost 1,000 pts as Budget disappoints D-St

All that happened in the markets today

3:25 PM

Pump stocks rally on budgetary sops; Shakti, Roto Pumps zoom 20%

Shakti Pumps (India) was locked in the upper circuit band of 20 per cent at Rs 293 on the BSE. The trading volumes on the counter jumped over 13-fold with a combined 3.12 million shares changing hands on the NSE and BSE. There were pending buy orders for 227,432 shares on both the exchanges at 02:59 pm.

 

Roto Pumps, too, rallied 20 per cent to Rs 183, while WPIL soared 10 per cent to Rs 688 in the intra-day trade today. In comparison, the S&P BSE Sensex tumbled 2.2 per cent or 887 points at 39,837. READ MORE

3:25 PM

TCS surges 5% in weak market, top gainer among Sensex, Nifty stocks

3:23 PM

NEWS ALERT | Investors lose Rs 3.72 trillion as Sensex tanks over 1,000 points

3:12 PM

Market check

3:10 PM

Budget 2020: How will Sitharaman pull of Rs 2.1-trn disinvestment miracle?

However, these are only the headline fiscal deficit numbers and do not reveal the full impact of the extra-Budget borrowings of the government. In 2019-20, total extra-Budget borrowings (including those mobilised through the issue of bonds fully serviced by the government and the financial support extended through loans from the National Small Savings Fund) were estimated at Rs 1.73 trillion. For 2020-21, these borrowings are expected to rise by eight per cent to Rs 1.86 trillion. READ MORE

3:05 PM

Market check

3:03 PM

MARKET COMMENT :: Anuj Puri, Chairman at ANAROCK Property Consultants

The Positives:

Affordable Housing continues to be the government’s focal point for real estate. The previous tax exemptions for both homebuyers and developers have been extended for another one year

Personal tax relief across various income slabs will invariably increase disposable income at the hands of the middle class, and boost their consumption capabilities. This benefit may, however, not percolate down to the housing sector as significantly as hoped for.

Abolition of DDT for corporates is another bold move that will help them to diversify or expand their business and also make India an attractive destination for investors, thereby boosting investments. This is definitely good news for commercial real estate.  

The Negatives:

Apart from the affordable housing push and personal tax relief, no major benefits came in for resolving the current housing mess. For instance, a hike in the INR 2 lakh tax rebate on housing loan interest rates under Section 24 of the Income Tax Act could have kick-started healthier demand for housing, especially in the affordable and mid-segment categories. But there was no announcement in this regard.
 

Also, the Budget missed any major announcement for easing liquidity in the real estate sector – a major worry for most developers. Project delays - the biggest fallout of the cash crunch – have severely dampened buyer sentiments. There was a dire need to address this concern immediately.

2:58 PM

MARKET COMMENT :: Budget quote by Vijay Bhushan, President, ANMI

We thank the Finance Minister for accepting our recommendation for abolishing the Dividend Distribution Tax. This move will benefit retail investors. Another highlight of the budget is the LIC IPO, which is akin to the Saudi Aramco listing for Indian Capital markets, and will be IPO of the decade.

2:55 PM

Insurance stocks tumble as government proposes LIC IPO; ICICI Pru tanks 11%

Shares of insurance companies, mainly life insurance, tumbled upto 11 per cent in intra-day trade on the BSE on Saturday after Finance Minister Nirmala Sitharaman proposed to list state-owned insurance behemoth Life Insurance Corporation (LIC) on stock exchanges. Among individual stocks, ICICI Prudential Life Insurance Company (ICICI Pru) tanked 11 per cent to Rs 457 on the BSE in intra-day trade. SBI Life Insurance Company, too, slipped 11 per cent to Rs 886, while HDFC Life Insurance Company dipped 10 per cent to Rs 538 on the BSE. READ MORE

2:53 PM

Budget 2020 :: FM Sitharaman proposes easing of tax payments for startups

Finance Minister Niramala Sitharaman on Saturday proposed easing of tax payments for startups with a view to promote growth of budding entrepreneurs.

 

"In order to give a boost to startup ecosystem, I propose to ease the burden of taxation on the employees by deferring the tax payment by five years or till they leave the company or when they sell, whichever is earliest," she said while presenting the Union Budget for 2020-21. READ MORE

2:46 PM

MARKET COMMENT :: Vikas Jain, Senior Research Analyst, Reliance Securities

National Infra pipeline to remain in focus for the development of various projects. Key infra players like LT, KNR will benefit. FMCG Index rallies off its 100 DMA Emami, Hindustan Unilever, Dabur, Tata Global are set to rally further

2:32 PM

Shankar Sharma on LTCG

2:30 PM

Nifty sectoral indices at this hour

2:19 PM

MARKET CHECK | L&T slips nearly 3.5%

2:13 PM

SECTOR WATCH:: Tech stocks gain in an otherwise weak market