Volatility continued as key benchmark indices bounced back after slipping to the red from green in early afternoon trade. High volatility materialized after Finance Minister Arun Jaitley said that the basic corporate tax rate will be reduced to 25% from 30% over the next four years. The Finance Minister also announced deferring roll out of general anti-tax avoidance rules (GAAR) by two years until 1 April 2017. The Sensex was currently up 287.65 points or 0.98% at 29,507.77. The market breadth indicating the overall health of the market once again turned positive from negative. Jaitley began his budget speech in Lok Sabha at 11:00 IST as he tables Union Budget 2015-16 in parliament.
The Finance Minister said that the credibility of the Indian economy has been re-established in the last 9 months and said that the government is targeting a reduction of fiscal deficit to 3% of GDP in 3 years. The path of fiscal consolidation is on track, he added. Jaitley said that the world is acknowledging that India is rising. Credibility of Indian economy has been re-established, Arun Jaitley said. The Finance Minister said that GDP growth is expected to accelerate to 8% to 8.5% in FY 2015-16 from 7.4% expected in the current year based on new series. Aiming for double-digit growth now seems feasible, he added. Jaitley said that the government is considering upscaling of PSU divestment programme. The government has to aim to making India manufacturing hub, he said. He further said that goods and services (GST) tax is likely to be implemented by April 2016.
Plan expenditure for FY15/16 is pegged at Rs 4.65 lakh crore. The Finance Minister said that the government proposes to introduce a bill on the black money in the current session in the parliament. Jaitley said that the PPP model will be revitalized. He also said that the government will bring comprehensive bankruptcy code
Due to the major event viz. the Budget, stock exchanges are conducting a live trading session today, 28 February 2015, despite it being a Saturday. Trading began at 9:15 IST and will conclude at 15:30 IST.
At 12:23 IST, the S&P BSE Sensex was up 287.65 points or 0.98% at 29,507.77. The index jumped 340.20 points at the day's high of 29,560.32, its highest level since 30 January 2015. The Sensex fell 18.24 points at the day's low of 29.201.88 in early afternoon trade.
The CNX Nifty was up 78.50 points or 0.89% at 8,923.10. The index hit a high of 8,941.10 in intraday trade, its highest level since 30 January 2015. The index hit a low of 8,834.65 in intraday trade.
The market breadth indicating the overall health of the market once again turned positive from negative. On BSE, 1,220 shares gained and 1,193 shares declined. A total of 122 shares were unchanged.
The BSE Mid-Cap index was up 23.68 points or 0.22% at 10,835.14. The BSE Small-Cap index was up 4.63 points or 0.04% at 11,324.19. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 1928 crore by 12:25 IST, compared with turnover of Rs 1608 crore by 11:55 IST.
Tata Steel (up 2.42%), HDFC (up 2.15%) and Bharat Heavy Electricals (Bhel) (up 1.81%) edged lower from the Sensex pack.
Banks stocks rose after Finance Minister Arun Jaitley in Union Budget 2015-16 today, 28 February 2015, said that government is committed to increasing people's access to formal banking. Among public sector banks, State Bank of India (up 1.22%), Bank of Baroda (up 4.14%), Canara Bank (up 2.06%), Punjab National Bank (up 1.78%), Indian Overseas Bank (up 1.75%), Corporation Bank (up 1.63%), Union Bank of India (up 1.57%), Bank of India (up 1.53%), Oriental Bank of Commerce (up 0.93%) edged higher.
Among private sector banks, Axis Bank (up 3.56%), ICICI Bank (up 1.63%), HDFC Bank (up 0.55%), Yes Bank (up 1.24%) ING Vysya Bank (up 0.39%), Kotak Mahindra Bank (up 0.31%) and IndusInd Bank (up 0.35%) edged higher.
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