INSUBCONTINENT EXCLUSIVE:
NEW DELHI: A farm friendly Budget with a push for consumption cheered equity markets on Friday as key benchmark indices rose half a per cent
However, this rally did not turn out to be a smooth one
At one point, both Sensex and Nifty ruled firm by more than 1 per cent, with the BSE index swelling more than 500 points during the day
As the fine print of the Budget got clearer, the BSE Sensex slipped into the red, only to settle higher by 213 points, or 0.59 per cent, at
Its NSE counterpart Nifty added 63 points, or 0.58 per cent, at 10,894
Finance Minister Piyush Goyal proposed to double the threshold tax exemption limit to Rs 5 lakh and increased the standard deduction to Rs
50,000 from Rs 40,000 in an attempt to woo middle-class voters.
The government also set aside Rs 75,000 crore per year for farmer income and
unveiled direct income support for smaller farmers.
Fiscal deficit for the current financial year is expected to be 3.4 per cent of GDP,
slightly higher than the earlier target of 3.3 per cent
According to analyst C K Narayan, this Budget is more "realistic" than expected
That is precisely why the bulls took over
"The tax relief to the middle class with high propensity to consume will certainly boost consumption, economic growth and corporate
This augurs well for the markets," said Dr V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
BSE auto, consumer
durables, FMCG and realty indices climbed up to 2.62 per cent.
Hero MotoCorp, Maruti, HCL Tech, Asian Paints and Bajaj Auto were on the
winner's list.
Market at a glance:> Auto leadsAuto stocks Hero MotoCorp and Maruti Suzuki were the top two gainers on the Sensex
Hero MotoCorp rallied 7.48 per cent while Maruti Suzuki rose 4.96 per cent
Other auto stocks like TVS Motors and Bajaj Auto too gained as auto stocks welcomed the announcement of farm package in Budget, along with
income tax exemptions.
> Black day for VedantaOn a day when the Sensex recorded stellar gains, Vedanta reeled under poor December quarter
The stock plummeted 17.82 per cent after the company posted a 26 per cent drop in consolidated net profit at Rs 1,574 crore in Q3 FY19
against Rs 2,114 crore in Q3 FY18, hit by lower commodity prices and disruption in its copper smelter operations at Tuticorin
Also, Vedanta's subsidiary Cairn India Holdings bought a stake for Rs 1,431 crore in Anglo American from Volcan Investments, a family trust
This move drew flak from analysts and market experts and investors stayed away.
> DHFL sufferedShares of DHFL cracked 24 per cent to touch
52-week low of Rs 103.35 on the BSE, only to end the day 17.96 per cent lower
With this, the stock extended its losing run to the fifth straight session
There have been allegations of financial mismanagement against the company
> Good day for minnowsIt turned out to be a good day for mid and smallcap indices too as both ended the day with gains
BSE Midcap closed the day 0.56 per cent higher while BSE Smallcap climbed 0.17 per cent
> Sectoral WatchBankex, metals, basic materials and finance are the only four sectors on the BSE out of the total 19 that slipped
Heavy selling was witnessed in banking and financial sectors
Meanwhile, the metal index slipped on account of heavy losses in Vedanta
Barring Hindalco, all other metal stocks ended in the red
> Jet set go!Jet Airways has agreed to most conditions set by Etihad Airways for offering a lifeline to the debt-laden carrier, according
to a TheIndianSubcontinent report
The stock reacted positively to this development and soared 7.79 per cent to finish the day at Rs 255.90
Expert-take:Rajnath Yadav, Sr
Research Analyst, Choice BrokingSentiment got a boost as the budget proposed financial incentives to rural people and a tax rebate to middle
However, market pared most of its gains in the late afternoon session amidst accelerated selling in some financial stocks
Despite the high volatility, benchmarks did not enter into negative territory and broader indices also ended the session in green
Volatility is likely to remain high in the coming sessions amidst ongoing earning season and impact analysis of budget announcements.
