Benchmarks were trading in negative terrain in afternoon trade. Bourses also witnessed a dash of volatility on account of ongoing Union Budget presentation. The Nifty gave up the crucial 11900 level to make a fresh intraday low. At 12:26 IST, the barometer index, the S&P BSE Sensex, was down 113.17 points or 0.28% at 39,794.89. The Nifty 50 index was down 41.85 points or 0.35% at 11,904.90.
The S&P BSE Mid-Cap index was down 0.3%. The S&P BSE Small-Cap index was down 0.38%.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 894 shares rose and 1197 shares fell. A total of 112 shares were unchanged.
Presenting her maiden budget in Lok Sabha, Finance Minister Nirmala Sitharman said that she would like to assure the nation that, except those unwilling to take the connection, all will have electricity connection, by 2022.
Sitharaman said it's right time to consider increasing minimum public shareholding in the listed companies, FM has asked Sebi to consider raising the current threshold of 25% to 35%.
To provide non-resident Indians (NRIs) seamless access to Indian equities, NRI portfolio investment route to be merged with foreign portfolio investment route.
Sitharaman said that with the changing economic scenario it's important to upgrade roads connecting villages to rural markets. For this Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road length over the next 5 years.
The government has allocated Rs 10,000 crore to the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme on 1 April 2019 for faster adoption of electric vehicles and has announced upfront incentives for electric vehicles. This will help attract investment for manufacture and ensure clean energy over time.
Railway infrastructure would need an investment of Rs 50 lakh crore between 2018 and 2030. PPP to be used to unleash faster development and the delivery of passenger freight services.
Under PMAY (Urban), over 81 lakh houses with investment of about Rs 4.83 lakh crore have been sanctioned of which construction has started in about 47 lakh houses. Over 26 Lakh houses have been completed of which nearly 24 lakh houses have been delivered, to beneficiaries.
India has emerged as a major space power. It is time to harness its ability commercially. To harness India's space ability commercially, a public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of ISRO.
FM said Rs 350 crore allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans. Pension for shopkeepers & retailers with turnover less than Rs 1.5 crore to be launched under Pradhan Mantri Karma Yogi Maan Dhan Scheme.
The government is contemplating organising an annual global meet to get all three sets of global players: industrialists, corporate leaders, corporate sovereign and venture funds, FM said.
India's FDI flows in 2018-19 remained strong compared to global at $54.2 billion, 6% higher than last year. The government will examine options of opening up FDI in media, animation and some other sectors to improve these flows further, FM added. 100% FDI will be permitted for insurance intermediaries.
Current rental laws are archaic as they do not assess the relation between the lessor and lessee in a fair manner. The government will look at improving the laws.
To deepen corporate tri-party repo market in corporate debt securities, govt will work with regulators RBI & Sebi to enable stock exchanges to allow AA rated bonds as collaterals.
Sitharman said the first term of PM Narendra Modi led NDA govt stood out as a performing government. Between 2014-2019 he provided a rejuvenated centre-state dynamics, cooperative federalism, GST council and strident commitment to fiscal discipline.
Sitharaman further said it took India over 55 years to reach $1 trillion dollar economy, but the country in just 5 years, added $1 trillion. The Indian economy will grow to become a $3 trillion economy in the current year itself. It is now the sixth largest in the world. Five years ago it was at the 11th position, she added. She further said that $5 trillion economy target was eminently achievable.
Realty stocks were in demand. Parsvnath Developers (up 8.79%), Housing Development and Infrastructure (HDIL) (up 8.15%), D B Realty (up 4.96%), Anant Raj (up 2.52%), Sobha (up 1.76%), Unitech (up 0.81%), Godrej Properties (up 0.74%), Phoenix Mills (up 0.31%), Mahindra Lifespace Developers (up 0.19%) and Omaxe (up 0.15%) gained. Sunteck Realty (down 1.07%), Indiabulls Real Estate (down 0.55%) and DLF (down 0.44%) declined.
Finance Minister Nirmala Sitharaman announced that the government will continue with its thrust for affordable housing. Pradhan Mantri Awas Yojana aims to achieve housing for all by 2022, Finance Minister said. Several reforms would be undertaken to promote rental housing. Current rental laws are archaic as they do not address lessor-lessee relationships fairly, Nirmala Sitharaman said. A modern tenancy law will be finalized and given to the states, she added.
Railway stocks were mixed. Container Corporation of India (up 0.33%), BEML (up 0.22%) and NELCO (up 0.17%) advanced. Hind Rectifiers (down 1.93%), Texmaco Rail & Engineering (down 1.24%), Bharat Heavy Electricals (down 0.75%) and Titagarh Wagons (down 0.24%) declined.
Railway infrastructure would need an investment of Rs 50 lakh crore between 2018 and 2030. PPP to be used to unleash faster development and the delivery of passenger freight services.
Agro stocks were in demand after FM proposed zero-budget farming. Godrej Agrovet (up 2.45%), Jain Irrigation Systems (up 1.47%), KSB Pumps (up 0.96%), Kaveri Seed Company (up 0.85%) and Monsanto India (up 0.36%) edged higher. Aries Agro (down 2.49%), Shakti Pumps (down 1.89%), Dhanuka Agritech (down 1.61%), Mahindra & Mahindra (down 1.25%) edged lower.
Construction shares rose. Tarmat (up 2.39%), IRB Infrastructure Developers (up 1.82%), KNR Constructions (up 1.62%), Patel Engineering (up 1.3%), Dilip Buildcon (up 1.29%), Hindustan Construction Company (up 1.28%), RPP Infra Projects (up 1.11%) and NCC (up 0.46%) advanced.
Sitharaman said that with the changing economic scenario it's important to upgrade roads connecting villages to rural markets. For this Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road length over the next 5 years.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.44% at 13.7250.
On the options front, Nifty option chain for 25 July 2019 expiry showed a maximum call open interest (OI) of 25.33 lakh contracts at the 12,000 strike price. Maximum put OI of 16.58 lakh contracts was seen at 11,500 strike price. Options data suggested a trading range for Nifty will be between 11,500 and 12,000.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
