Markets ended over 1% down on Friday amid a volatile trading session as the high fiscal deficit forecast of 5.1% for 2012-13 weighed on market sentiment.
The Sensex ended down 225 points at 17,451 and the Nifty ended down 63 points at 5,318.
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(Updated at 14:16 hrs)
Markets are trading weak amid volatile trades post the presentation of the Budget speech. The 30-share Sensex is trading flat at 17,645, and the 50-shares Nifty has slipped 3 points at 5,378.
On the global front, Asian markets are trading on a mixed note. European markets have also opened flat.
Back home, Banks which are proxy to the economy have gained after the Finance Minister pegged GDP growth rate at 7.6% for 2012-13. HDFC Bank, ICICI Bank and HDFC are up between 1-2 %.
Auto shares have firmed up after no announcement of excise duty on diesel cars. However, standard excise duty rate was increased from 10% to 12%, which was on expected lines and duty on large cars was raised from 22% to 27%. M&M and Tata Motors have gained between 2-4%.
I-T-C is the top Sensex gainer up 3.4% after the Finance Minister proposed to reduce customs duty on cigarettes in Union Budget. However, hiked excise duty on beedi and other tobacco products, which will be positive for the company.
On the losing side, index heavyweight RIL has declined by almost 2%. ONGC has declined by almost 5%. Sun Pharma is the top Sensex loser, down by almost 6%.
As regards the capital markets, the government today lowered the securities transaction tax (STT) to 0.1%, a move that will bring down costs of equity transactions. L&T and BHEL are down by almost 1% each.
In the personal tax section, the Finance Minister has raised the exemption limit from Rs 1.8 lakh to Rs 2 lakh. Further, Income from Rs 2-5 lakh - tax will be 10%; income from Rs 5-10 lakh - tax will be 20%; and above Rs 10 lakh - tax of 30 % he said.
Finance Minister Pranab Mukherjee has raised excise duty up on large cars from 22% to 24%, while customs duty on auto parts has also been increased.
However, the Finance Minister has not announced extra tax for diesel vehicles, which will come as a big relief to the auto sector.
Finance Minister Pranab Mukherjee has raised excise duty up on large cars from 22% to 24%, while customs duty on auto parts has also been increased.
However, the Finance Minister has not announced extra tax for diesel vehicles, which will come as a big relief to the auto sector.
Meanwhile, Midcaps and Smallcaps are trading flat. The market breadth on the B-S-E has turned neutral with 1,323 shares advancing and 1,297 shares declining.
Atlas Cycles (Haryana) has rallied 20% to Rs 394, while Hercules Hoists zoomed 16% to Rs 294 on the Bombay Stock Exchange. The trading volumes on these counter surged more than ten-fold today, compared to average daily trading volumes in past ten trading days on both the exchanges.
Atlas Cycles (Haryana) and Hercules Hoists have rallied more than 15% each after the Finance Minister proposed to enhance basic customs duty on bicycles from 10% to 30% and on bicycle parts from 10% to 20%.
As a measure of support, I propose to enhance basic customs duty on bicycles from 10% to 30% and on bicycle parts from 10% to 20%,” the Finance Minister Pranab Mukherjee said in its Union Budget speech.
