Budget 2019: Thirty four out of 50 Nifty stocks finished in the green.
Domestic stock market closed on a higher note as Union Minister Piyush Goyal announced higher rural spending as well as tax exemptions in his Budget speech. After surging over 500 points to hit the day's high of 36,778.14, the S&P BSE Sensex ended 212.74 points, or 0.59 per cent higher at 36,469.43. Similarly, the NSE's benchmark index Nifty finished 62.70 points, or 0.58 per cent higher at 10,893.65 after touching the day's high of 10,983.45 from the previous close. The gains on Dalal street were led by buying in auto, IT, FMCG and pharma stocks. Heavyweights Reliance Industries, HDFC, Maruti, Infosys and Hero MotoCorp contributed most to the advances on the Sensex. Thirty four out of 50 Nifty stocks finished in the green.
Overall, the market mood was positive throughout the day even as the government overshot the fiscal deficit target for the current financial year. “There are two things playing out for the banking sector from the Union Budget. On one hand, the higher fiscal deficit target set at 3.4 per cent for 2018-19 and at 3.4 for 2019-20 will mean that the RBI may not be too keen to cut rates in the immediate future," said Jaikishan Parmar, Senior Equity Research Analyst, BFSI, Angel Broking Ltd. "Also, banks have been assured that the government will continue to provide any capital required that is justified by the banks. Overall, banks should also benefit from the Kissan Samman Yojana," he said.
In the Budget speech, Piyush Goyal also proposed a full-tax rebate on annual personal income up to Rs 5 lakh and increased the standard deduction to Rs 50,000 from Rs 40,000. The proposal will benefit 3 crore middle-class tax payers, Mr Goyal said while unveiling the budget proposals for 2019-20. This was the last Interim Budget of the NDA government led by Prime Minister Narendra Modi before the Lok Sabha elections due by May.
Budget 2019 Markets Live: Latest updates of Sensex, Nifty
"The outcome of Interim Budget has been marginally better than expected by the market as it provided incentives to small farmers and common man while maintaining a rationality in the long term," said Vinod Nair, Head of Research, Geojit Financial Services.
"For the market in the short term, Nair said the Budget provided a good signal since the Interim Budget "will not trouble the economic accountancy and populist agenda. These measures are positive for the consumption oriented sectors like FMCG, consumer staples and durables as well as auto and has attracted investor interest," he said.
Auto and consumption stocks buzzed the most as investors welcomed incentives for the agriculture sector and middle class in the budget, traders were quoted as saying in news agency Press Trust of India report.
According to Mustafa Nadeem, CEO, Epic Research, the budget announcements are going to bring in a lot of liquidity to the market in terms of investment. "Some profit-booking and consolidation in the short term was expected as prices tend to absorb the Budget, but we expect the momentum to remain strong," he added.
However, state-run lenders including State Bank of India, which reported its quarterly results earlier in the session, closed 3.76 per cent lower, while Punjab National Bank ended 4.77 per cent lower respectively on the NSE.
The Nifty auto index settled 2.71 per cent higher.
Closing between 1.94 per cent and 7.48 per cent higher, Hero MotoCorp, Maruti, HCL Tech, Asian Paints were the major advancers on the Sensex.
Top gainers on the Nifty were Hero MotoCorp, Maruti, HCL Tech, Eicher Motors and Dr Reddy's, settling between 3.32 and 7.54 per cent higher.
The Sensex moved in a range of 36,778.14-36,221.32 during the session, whereas the Nifty touched a high of 10,983.45.
The S&P BSE Sensex ended 212.74 points or 0.59 per cent higher, at 36,469.43 while, NSE's benchmark index Nifty closed at 10,893.65, up 62.70 points or 0.58 per cent from the previous close.
The 10-year benchmark government bond yield rose to 7.60 per cent from 7.49 per cent pre-budget, while the rupee was almost steady at 71.14 to the dollar compared to pre-budget level of 71.18.
The 30-share benchmark index is 217.24 points or 0.60 per cent higher at 36,473.93, and the Nifty is at 10,894.40, up 63.45 points or 0.59 per cent from the previous close.
The Nifty auto index is 2.34 per cent up.
"Market is basically forecasting increased consumption due to reduction in taxes," said Sunil Sharma, chief investment officer, Sanctum Wealth Management.
Hero MotoCorp, Maruti, HCL Tech, Asian Paints, Bajaj Finance and Hindustan Unilever are the top gainers on the Sensex, trading between 2.01 per cent and 6.98 per cent higher.
The 30-share benchmark index is 137.40 points or 0.38 per cent higher at 36,394.09, and the Nifty is at 10,869.60, up 38.65 points or 0.36 per cent from the previous close.
Consumption-driven stocks rallied the most after the Budget announcement, with BSE auto, consumer durables, FMCG and realty indices soaring up to 4 per cent.
Overall, market sentiments are bullish even as the government overshot the fiscal deficit target
for the current financial year and announced some populist measures, which experts believe will increase fiscal burden on the exchequer.
Healthy buying can be witnessed in the auto, FMCG and capital goods stocks.
Shares of Vedanta Ltd slumped to a two-and-a-half-year low after analysts expressed concerns over an investment by the parent company of the conglomerate in African miner Anglo American.
The stock slumped as much as 19.86 per cent, the largest intraday fall since October 2008. More than 7.4 crore shares - 7.4 times its 30-day average - had changed hands by early afternoon, making it the most-heavily traded security on the NSE index
According to Viral Berawala, CIO, Essel Mutual Fund, the budget is pro-growth with large sections of the population viz small farmers and middle class being the primary beneficiaries. "The fiscal slippage number is tolerable, although the net borrowing number is higher than market expectation," he said.
Sector wise, the NSE auto, FMCG, realty, pharma and banking indices are up while metal stocks are down.
Prominent gainers on the 50-scrip index are Hero MotoCorp, Maruti, Eicher Motors, Indiabulls Housing Finance and Mahindra & Mahindra, trading between 4.01 per cent and 7.16 per cent.
Markets soared after Union Minister Piyush Goyal said that individual taxpayers with annual income up to Rs 5 lakh will get full tax rebate. " Individuals with gross income up to Rs. 6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities. Around three crore middle class taxpayers will get tax exemption due to this measure," Piyush Goyal said.
The S&P BSE Sensex surges as much as 449.72 points to touch 36,706.41, while the Nifty50 barometer of the National Stock Exchange advances by 127.8 points to hit 10,958.75.
The Nifty auto index is 3.20 per cent up.
Sensex up 445.68 points, or 1.23 per cent higher, to trade at 36,702.37. The Nifty edges higher by 117.35 points, or 1.08% higher to trade at 10,948.30.
Sensex up 110.65 points, or 0.31% higher, to trade at 36,367.34. The Nifty edges higher by 27.20 points, or 0.25% higher to trade at 10,858.15.
"For the first time, the defence Budget has been raised to over Rs 3 lakh crore," said Piyush Goyal. Defence stocks are trading higher with Larsen & Toubro Limited up 0.87 per cent on the NSE.
Realty stocks are maintaining their morning gain as Union Minister Piyush Goyal announces projects for the infrastructure space. Nifty Realty index is up 1.77 per cent.
The FMCG index is 0.92 per cent higher on the NSE.
Agriculture stocks jump as interim Budget 2019 focuses on farmers; Nagarjuna Fertilizers trades 5.92 per cent higher on the NSE.
"The government has made a historic plan called the PM Kishan programme. Those small farmers who have less than two hectares will get a support of Rs. 6,000," said Piyush Goyal. "It will be transferred directly to the bank accounts of farmers in three instalments of Rs. 2,000," he added.
The 30-share benchmark index trades 166.66 points or 0.46 per cent higher at 36,423.35, and the Nifty is at 10,874.20, up 43.25 points or 0.40 per cent from the previous close.
In his budget 2019 speech
, meanwhile, Union Minister Piyush Goyal revises the fiscal deficit target for 2018-19 to 3.4 per cent of the GDP, from the previous target of 3.3 per cent.
Shares of Jet Airways rise 9.77 per cent on the NSE on reports that the lenders
have made progress in involving Etihad to take a higher stake in the company.
According to Deepak Jasani, HDFC Securities, advance decline ratio remains positive in markets on anticipation of positive cues from the Budget. "Real estate, FMCG, media and auto indices are up, suggesting expectation build-up in these sectors while metal index is down following poor numbers from Vedanta the previous evening," he said.
Prominent gainers on the 50-scrip index are Hero MotoCorp, Maruti, Eicher Motors, ZEEL and Bharti Airtel, trading between 2.06 and 3.48 per cent higher.
Sensex up 85.54 points, or 0.24% higher, to trade at 36,342.23. The Nifty edges higher by 30.85 points, or 0.28% higher to trade at 10,861.80.
Union minister Piyush Goyal is reading out the contents of the Budget 2019 in parliament. This is the last Interim Budget of the NDA government led by Prime Minister Narendra Modi before the Lok Sabha elections due by May.
The 30-share benchmark index trades 127.61 points or 0.35 per cent higher at 36,384.30, and the Nifty is at 10,873.80, up 42.85 points or 0.40 per cent from the previous close.
Globally, investor caution is also mounting ahead of US jobs data later in the session. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.2 per cent, though that followed a stellar 7.2 per cent gain in January.
Asian shares crept back from four-month highs as a dismal survey on Chinese factory activity dulled optimism about the prospects for a Sino-US deal on tariffs.
The rupee depreciated by 9 paise to 71.17 in early trade on the forex market amid strengthening of the American currency and caution ahead of interim budget. (Read more)
Top gainers in the Sensex pack include Maruti, Bharti Airtel, HCL Tech, Hero MotoCorp, Bajaj Finance and Mahindra & Mahindrai, rising up to 3.88 per cent.
The 30-share benchmark index trades 154.48 points or 0.43 per cent higher at 36,411.17, and the Nifty is at 10,870.95, up 40.00 points or 0.37 per cent from the previous close.
It is classic macroeconomic theory to expect the government to come forward with fiscal stimulus during times of economic weakness, said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.
A looming election and aggressive opposition only adds to the pressure to deliver a meaningful relief package, he said; adding that, should the Budget disappoint, investors'' attention is likely to revert to concerns centered around slowing growth and elections.
Domestic market, however, will continue to be volatile ahead of the interim budget which will be announced today, traders were quoted as saying in news agency Press Trust of India report.
On a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 3,006.41 crore on Thursday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,634.32 crore, provisional data available with NSE showed.
According to Hemang Jani, Head - Advisory at Sharekhan by BNP Paribas, the government might look to boost the rural and agriculture sector ahead of the general election. "Expect the government to go in for a populist Budget; however, market participants will closely weigh in the risk of a higher fiscal deficit and its impact on the market," he said.
Housing Development Finance Corp Ltd and Infosys Ltd are up 1.16 per cent and 0.86 per cent on the NSE, respectively.
The 10-year benchmark government bond yield is at 7.49 per cent, barely changed from Thursday's close of 7.48 per cent, while the rupee is almost steady at 71.14 to the dollar compared with its previous close of 71.09.
Traders are on the sidelines, awaiting details on the extent to which the government will spend on measures in budget 2019 due later in the day.
The Nifty IT index is up 0.96 per cent.
HCL Tech, Hero MotoCorp, Bharti Airtel, Bajaj Finserv, Mahindra & Mahindra and Hindustan Unilever, trading between 1.17 and 2.87 are among the top BSE gainers.
Top advancers on the 50-scrip index are Hero MotoCorp, Indiabulls Housing Finance, Bharti Airtel, HCL Tech and Bajaj Finserv, trading between 1.61 and 3.02 per cent higher.
The 30-share benchmark index trades 108.82 points or 0.30 per cent higher at 36,365.51, and the Nifty is at 10,857.25, up 26.30 points or 0.24 per cent from the previous close.
In the pre-open session, 30-share Sensex trades at 36,311.74, 55.05 points higher. Yes Bank, Power Grid, Mahindra & Mahindra, Bajaj Finance, SBI and NTPC are the major gainers on the BSE.
The SGX Nifty was last seen trading 43.5 points, or 0.4 per cent, higher at 10,898.55 on the Singapore Exchange.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1 per cent after a stellar 7.2 per cent gain in January.