Infrastructure Sector gains on announcement of raising corpus of rural infrastructure development fund
Budget Headlines: 1% excise duty on 130 new items
Budget headlines: 10% excise duty on Branded Garments
Budget Headlines: Surcharge reduced from 7.5% to 5% for domestic companies
Budget Headlines: Age for being classified as senior citizen cut to 60 years from 65 years
Budget headlines: MAT raised to 18.5% from18%
Budget Headlines: Income tax exemption limit raised to Rs 1.8 lakh from Rs 1.6 lakh
Budget Headlines: To keep the standard rate for Excise Duty at 10%
Budget headlines: FY 13 fiscal deficit target at 4.1%
MARKET INDISE
On Monday 28 Feb 10, 2011, ,On Dalal Street, the local bourses commenced the significant trading session on an optimistic note on hopes that the finance minister will deliver a market friendly Budget. The global cues at the start of the session were showing mixed trend with the overnight gains of US markets on Friday and mixed trend of Asian shares. While, there was growing unrest in investor's mind as the finance minister crafts the new budget, as this would decide the growth trajectory. Much in line with the expectation, the stock market's biggest worry --Budget 2011-12--proved to be positive event as it boosted the benchmark indices to trade higher since the budget presented few negatives, than a surfeit of positives. The excise duty and service tax got retained at 10 per cent against expectations of a 2 per cent hike. The FM has also proposed to cut the surcharge on domestic companies from 7.5 per cent to 5 per cent further filling confidence in investor's mind which mirrored in trade and gave their thumbs up to the Budget as the 30 share index garnered over 500 points. However, approaching the final leg, with increased in the Minimum Alternate Tax (MAT) to 18.5% from the current 18% acting as the mood dampener and the higher profit taking after the huge rally made the benchmark indices to shed their early massive gains.
The BSE Sensex gained 131.21 points or 0.74% to settle at 17,832.12 (Provisional). The index touched a high and a low of 18,296.53 and 17,718.88 respectively (Provisional). There 16 stocks advancing against 14 declining one's on the index (Provisional). The S&P CNX Nifty rose 30.65 points or 0.58% to settle at 5334.20 (Provisional). The index touched a high and a low of 5477.00 and 5308.60, respectively (Provisional). 27 stocks advanced against 22 declining ones on the index and 1 stock remain unchanged (Provisional).
The BSE Mid-cap and Small-cap indices gained 0.37% and 0.40%, respectively (Provisional). In the BSE sectoral space Fast Moving Consumer Goods (FMCG) up 4.57%, PSU up 1.99%, Realty up 1.29%, Oil & Gas up 0.43%, Capital goods up 0.38% were the major gainers (Provisional). On the other hand, Consumer durables down 0.21%, Auto down by 0.18% and Power down 0.10% were the major losers in the BSE sectoral space (Provisional).
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