Key benchmark indices slumped and hit fresh intraday low in early afternoon trade as Finance Minster Arun Jaitley made a number of announcements in his speech while presenting Union Budget 2014-15 in parliament. The barometer index, the S&P BSE Sensex, hit its lowest level in almost two weeks. The 50-unit CNX Nifty hit 2-1/2 week low. The Sensex was down 286.99 points or 1.13%, off close to 460 points from the day's high and up about 35 points from the day's low. The market breadth indicating the overall health of the market was weak.
Some defence stocks rose after the finance minster raised limit on foreign direct investment in defence sector to 49%. Fertiliser stocks rose after the finance minster said the government will overhaul the subsidy regime. PSU OMCs declined.
The Finance Minster said the government is aiming sustained growth of 7-8% in economy in next 3-4 years. Jaitley announced increase in celing on foreign investment in the defence and insurance sectors. The finance minister said he accepts target of 4.1% of GDP for fiscal deficit 2014/15 which was set by the previous government set in the interim budget. The government is aiming fiscal deficit of 3% in FY 2017. He said, the government has to undertake bold steps to spur growth of economy.
Jaitley said the government aims to approve Goods and Services tax by the end of this year. Jaitley said the government will not change rules on retrospective taxation. The government will constitute expenditure management commission, he added.
At 11:50 IST, the S&P BSE Sensex was down 286.99 points or 1.13% to 25,157.92. The index gained 168.91 points at the day's high of 25,613.72 in mid-morning trade. The index shed 327.81 points at the day's low of 25,117 in early afternoon trade, its lowest level since 27 June 2014.
The CNX Nifty was down 77.60 points or 1.02% at 7,507.40. The index hit a high of 7,626.85 in intraday trade. The index hit a low of 7,479.05 in intraday trade, its lowest level since 23 June 2014.
The market breadth indicating the overall health of the market was weak. On BSE, 1,583 shares declined and 826 shares rose. A total of 62 shares were unchanged.
The BSE Mid-Cap index was down 1.82%. The BSE Small-Cap index was down 1.88%. Both these indices underperformed the Sensex.
Sesa Sterlite (down 3.45%), Bharti Airtel (up 2.18%), and Axis Bank (down 2.85%) edged lower from the Sensex pack.
Realty stocks were mixed after the finance minster in the Union Budget said the government will provide necessary incentives for introducing Real Estate Investment Trusts. DLF (up 1.32%), Oberoi Realty (up 0.54%) gained. Unitech (down 4.43%), D B Realty (down 0.06%), and Sobha Developers (down 3.56%) declined.
Fertiliser stocks rose after the finance minster in the Union Budget said the government will overhaul the subsidy regime. National Fertilizer (up 1.46%), GNFC (up 2.39%), GSFC (up 2.29%), and Chambal Fertiliser & Chemicals (up 2.47%) gained.
PSU OMCs declined. BPCL (down 2.45%), HPCL (down 2.73%) and Indian Oil Corporation (down 2.62%) declined.
Some defence stocks rose after the finance minster in the Union Budget raised limit on foreign direct investment in defence sector to 49%. BEML (up 1.22%) and Bharat Forge (up 3.37%) gained.
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