Key benchmark indices languished in negative terrain in 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, Sensex was down 65.79 points or 0.26%, up about 265 points from the day's low and off close to 2350 points from the day's high. The market breadth indicating the overall health of the market was weak.
Share of shipping companies fell after the finance minister in the Union Budget 2014-15 said will announce new ship building policy this fiscal. Shares of port makers fell after the finance minister in the Union Budget 2014-15 allocated Rs 11635 crore to develop existing ports and harbours.
The Finance Minster said the government is aiming sustained growth of 7-8% in economy in next 3-4 years. Jaitley announced increase in ceiling 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 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. He said the government will review Direct Tax Code. Jaitley said there will be no change ni s to the direct tax rates. He also said that the 3% education cess will continue. Jaitley said the government will extend 5% withholding tax on corporate bonds till 30 June 2017.
At 12:55 IST, the S&P BSE Sensex was down 65.79 points or 0.26% to 25,379.02. 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 16.05 points or 0.21% at 7,568.95. 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, 1,688 shares declined and 866 shares rose. A total of 62 shares were unchanged.
The BSE Mid-Cap index was down 0.51%. The BSE Small-Cap index was down 0.68%. Both these indices underperformed the Sensex.
Hero MotoCorp (down 1.36%), Bharti Airtel (down 2.93%), and State Bank of India (SBI) (down 1.66%) edged lower from the Sensex pack.
Share of shipping companies fell after the finance minister in the Union Budget 2014-15 said will announce new ship building policy this fiscal. Shipping Corporation of India (down 0.57%) and Mercator (down 1.18%) declined. Great Eastern Shipping Company rose 0.11%.
Among ship building companies, Bharati Shipyard was up 1.4% at Rs 38.50. ABG Shipyard was off 0.27% at Rs 258.25.
Shares of port makers fell after the finance minister in the Union Budget 2014-15 allocated Rs 11635 crore to develop existing ports and harbours. Essar Ports (down 3.9%) and Adani Ports and Special Economic Zone (down 0.68%) declined. Gujarat Pipavav Port rose 2.38%.
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