Sensex Falls Over 700 Points, Nifty Breaks 11,750
01 February 2020
Budget 2020: Sensex Drops Over 700 Points As Markets Extends Losses
The stock markets extended losses as Budget proposals failed to enthuse investors. The Sensex slumped as much as 708 points to hit an intraday low of 40,015 and Nifty 50 index dropped 220 points to hit a low of 11,741.
44 out of 50 shares in the Nifty basket were trading lower.
Market Update: Sensex Plunges 400 Points, Nifty Breaks 11,850
The Sensex and Nifty extended losses after the Finance Minister Nirmala Sitharaman announced removal of dividend distribution tax (DDT) at the dividend distributing company but retained tax at the hands of dividend receiver.
The Sensex plunged as much as 481 points to hit an intraday low of 40,242 and the Nifty fell as much as 145 points to 11,817.
Government Announces Removal Of Dividend Distribution Tax
The Budget proposed to remove dividend distribution tax in order to increase attractiveness of Indian equities, Finance Minister Nirmala Sitharaman said. The proposed changes call for taxing dividend at the hands of receiver rather than the dividend distributing company.
Finance Minister Announces Income Tax Cuts For Individuals
Finance Minister Nirmala Sitharaman announced income tax cuts for individuals under the proposed tax changes has significantly reduced taxes for individuals who do not claim any exemptions under the Income Tax Act, Ms Sitharaman said.
Below are the new tax slabs:
Individuals earning between Rs 0-2.5 lakh will have to pay no tax
Individuals earning between Rs 2.5-5 lakh will be taxed at 5%
Individuals earning between Rs 5-7.5 lakh will be taxed at 10%
Individuals earning between Rs 7.5-10 lakh will be taxed at 15%
Individuals earning between Rs 10-12.5 lakh will be taxed at 20% from 30%
Income between 12.5-15 lakh will be taxed at 25% from 30%
Above 15 lakh individuals will be taxed at 30%
The government will take a hit of Rs 40,000 crore from lowering the income tax rates, Ms Sitharaman added.
Budget 2020 Pegs Expenditure At Rs 30.42 Lakh Crore For Current Fiscal
Receipts estimated at Rs 22.46 lakh crore and expenditure expected at Rs 30.42 lakh crore, says Finance Minister Nirmala Sitharaman.
Government Estimates Fiscal Deficit Of 3.8% Of GDP For Current Financial Year
The government has estimated fiscal deficit target of 3.8 per cent of gross domestic product (GDP) against an earlier estimated target of 3.3 per cent for the current financial year. For the next financial year, finance minister has proposed fiscal deficit of 3.5 per cent.
LIC IPO To Be Launched As part Of Disinvestment
Finance Minister while presenting Budget 2020-21 said that as part of disinvestment government is planning to sell stake in Life Insurance Corporation of India (LIC) via Initial Public Offer (IPO).
IDBI Bank Surges After Government Proposes To Sell Stake
Shares of IDBI Bank surged as much as 17.55 per cent to hit an intraday high of Rs 39.85 after the Finance Minister in Budget 2020-21 proposed to sell government's stake in IDBI Bank.
As many as 12.28 lakh shares changed hands on the BSE compared to an average of 2.93 lakh shares traded daily in the past two weeks.
Banking Shares Mixed After Finance Minister Proposes Measures For Banking Sector
Gauge of banking shares on NSE - Nifty Bank - index was down 0.3 per cent after Finance Minister proposed measures for banking sectors. Nirmala Sitharaman while announcing Budget said that depositors' money is absolutely safe in scheduled commercial banks. Ms Sitharaman also proposed to increase deposit insurance to Rs 5 lakh from current maximum limit of Rs 1 lakh.
Banking shares react to Budget proposals:
ICICI Bank shed 0.2%
HDFC Bank lost 0.3%
Kotak Mahindra Bank weakened 0.4%
SBI fell 0.9%
IndusInd Bank lost 0.9%
Government Steps Up Funding Of Farm Sector To Lift Stuttering Economy
Government announced billions of dollars of state funding to help the sprawling farm sector in its 2020/21 federal budget on Saturday, aiming to get broader economic growth back up from its lowest in a decade.
Finance Minister Nirmala Sitharaman, presenting the budget for the financial year beginning April 1 to parliament, said there was a need to liberalise farm markets and the government was committed to doubling farmers' income by 2020.
Agriculture accounts for 15 per cent of India's gross domestic and a source of livelihood for more than half of the country's 1.3 billion population.
Ms Sitharaman said Rs 2.83 lakh crore will be allocated for agriculture and allied activities including helping farmers set up solar power generation units as well as establish a national cold storage to transport perishables.
Market Update: Sensex Falls Over 100 Points, Nifty Below 11,950
The S&P BSE Sensex and NSE Nifty 50 indexes were trading lower as Finance Minister presented Union Budget for financial year 2020-21.
As of 12:22 pm, the Sensex was down 91 points at 40,632 and the Nifty was at 11,930, down 32 points.
Railway Shares Mixed After Budget Proposes Series Of Measures For Railways
Railway stocks are trading mixed after the Finance Minister Nirmala Sitharaman made a series of announcements pertaining to the Railways in her ongoing budget speech. The finance minister has announced more Tejas-type trains to connect tourist destinations, high-speed trains to connect Mumbai and Ahmedabad, and a suburban project in Bengaluru.
In her speech, the finance minister announced beginning of work on the Chennai-Bengaluru expressway and completion of the Delhi-Mumbai expressway by 2023. She also announced the establishment of large solar power capacity along railway tracks.
Among railway stocks, IRCTC strengthened 2.9% at Rs 1244 and Texmaco Rail and Engineering added 1.8% to Rs 39 on the BSE. On the other hand, IRCON shed 1.2% at Rs 469 and Titagarh Wagons weakened by 1.8% at Rs 51.
Computer Hardware Makers Gain After Budget Proposes Rs 6,000 Crore For Bharat Net Programme
Shares of computer hardware makers rose after the government proposed Rs 6,000 crore for Bharat Net programme.
The Budget also proposed for a policy for creating data centre parks.
D-Link India rose 3.5%
HCL Infosystems added 4.9%
TVS Electronics rose 2.7%
Eco Recycling advanced 2.6%
SPEL Semiconductors rose 5.5%
Road Developers Surge After Finance Minister Proposes To Monetise 12 Lots of Highways
Shares of road developers rose after the Budget 2020 proposed to monetise 12 lots of highways of 6,000 kilometres by 2024. The Finance Minister also said that Delhi-Mumbai expressway will be completed by 2023 and work on Chennai-Bengaluru expressway will be started.
Dilip Buildcon rose 2.4%
IRB Infra gained 4.2%
Sadbhav Engineering added 2.7%
Ashoka Buildcon added 0.6%
Electronic Goods Makers Fall As Budget Proposes Scheme To Encourage Manufacturing Mobile Phones
Electronic goods makers reacted negatively after the Budget proposed a scheme to encourage manufacturing of mobile phones, networking and semi-conductor devices.
Videocon Industries rose 4.95%
Mirc Electronics fell 4%
Dixn Technologies fell 2%
Honeywell Automation fell 0.1%
Fisheries Shares Surge After Budget Proposes To Increase Production To 200 Lakh Tonnes By 2022-23
Fisheries stocks have responded favorably to the announcement of a framework for marine fishery resources by Finance Minister Nirmala Sitharaman in her budget speech. The Finance Minister also announced that fish production would be raised to 200 lakh tonnes by 2022-23.
Fisheries stocks reaction to Finance Minister's proposals:
Zeal Aqua galloped 17%
Avanti Feeds strengthened 4.6%
Apex Frozen Foods gained 5.9%
Coastal Trawlers added 3.7%
Healthcare Shares Rise After Government Proposes To Set Up More Hospitals
Shares of hospital operators rose after the Finance Minister Nirmala Sitharaman in Budget 2020 proposed to set up new hospitals under the Ayushman scheme. Ms Sitharaman proposed private public partnership (PPP) model for setting 112 hospitals in aspirational districts.
Apollo Hospitals rose 1.2%
Dr Lal Pathlabs rose 2.4%
Aster DM Healthcare rose 1.6%
Metropolis Healthcare rose 3.7%
Market Update: Sensex, Nifty Turn Choppy As Finance Minister Presents Budget
The share markets turned flat and were trading in a choppy manner as Finance Minister presents Budget for Financial Year 2020-21. The Sensex was up 9 points at 11,971 and the NSE Nifty 50 index was 32 points at 40,755.
Committed To Goal Of Doubling Farm Income, Says Finance Minister
Shares of companies engaged in making agriculture equipment and fertilisers rose after the Finance Minister said that under "Aspirational India" first point is agriculture, irrigation and rural development. The government is committed to doubling farmers' income by 2022, Ms Sitharaman added.
Jain Irrigation rose 4.89%
Finolex Industries rose 0.86%
Chambal Fertilisers rose 0.88%
Tata Chemicals rose 0.2%
GSFC rose 1.9%
Maruti Suzuki Rises After Sales Rise Nearly 2% In January
Maruti Suzuki stock has raced ahead on the BSE after automobile manufacturer reported a 1.6 per cent rise in year-on-year sales in January this year. The stock was trading higher by 140 points or 2 per cent at Rs 7,052 on the BSE compared to BSE's gains of 127 points or 0.3 per cent at 40,850.
The automobile major sold a total of 1,54,123 vehicles in January 2020 compared to 1,51,721 vehicles in the same month last year, the company said in a regulatory filing. The total sales in January included 1,42,250 units in the domestic market, 2,249 units of domestic OEM sales and 9,624 units of exports.
Out of a total 1,51,721 vehicles sold in the same month last year, a total of 142,150 units were sold in the domestic market 9,571 vehicles were exported outside the country.
Sales in the mini segment - including Alto, S-Presso and Old Wagon models - gained 10.8 per cent to 25,885 cars. ?
In the compact segment, which includes Celerio, Ignis, Swift and New Wagon R models, the sales gained 11.6 per cent to 84,340 cars, Maruti Suzuki said.
Budget 2020 Based On Aspirational India, Economic Development
The Budget based on three themes aspirational India, economic development for all and caring society, says Finance Minister Nirmala Sithraman.
Fundamentals Of Economy Strong, Says Finance Minister
Finance Minister Nirmala Sitharaman speaks while presenting Union Budget 2020:
A household saves average 4% annually becaise of GST
The milestones achieved are unprecedented, globally recognised
GST has been gradually maturing
Rollout of GST was most historic
I pay homage to the visionary leader late Shri Arun Jaitley
Fundamentals of the economy are strong
And that has ensured macroeconomic stability
Only through higher growth can we have our youth gainfully and meaningfully employed
Budget 2020 Aims To Boost Income Of Every Individual, Says Nirmala Sitharaman
This Budget is for to boost income and enhance purchasing power of every Individual, says Nirmala Sitharaman.
Budget aims to give hopes and aspirations to every individual, added Ms Sitharaman.
Finance Minister Nirmala Sitharaman Presents Union Budget 2020
The Finance Minister Nirmala Sitharaman rises to present the Union Budget for financial year 2020-21 in Lok Sabha.
IRCTC Shares Surge For Seventh Day In A Row, Hits Record High Ahead Of Budget
Shares of Indian Railway Catering and Tourism Corporation (IRCTC) surged for seventh day in a row ahead of Union Budget 2020. The stock rose as much as 10 per cent to hit a record high of Rs 1,332 per share.
In the last seven sessions, IRCTC shares have risen 35 per cent outperforming the Sensex and Nifty 50 indexes.
Sensex, Nifty Rise Ahead Of Budget Announcement
The S&P BSE Sensex rose over 79 points to 40,800 and the Nifty 50 index climbed 21 points to 11,981 ahead of presentation of Union Budget 2020 by Finance Minister Nirmala Sitharaman.
25 of Nifty 50 shares were advancing while the remaining 25 were declining in the Nifty 50 index.
The Finance Minister Nirmala Sitharaman will table the Budget documents present the Budget speech at 11:00 am today.
Sensex, Nifty Recover Led By Gains In FMCG Shares
The S&P BSE Sensex and NSE Nifty 50 indexes recovered from intraday low levels led by gains in FMCG shares such as Hindustan Unilever and ITC.
As of 10:09 am, the Sensex was up 46 points at 40,770 and the Nifty was at 11,968, up 6 points.
ITC Gains After Its Profit Rises 29% In Q3
ITC edged higher by 0.1 per cent to Rs 236 after it reported a 29 per cent jump in its December quarter profits.
India's largest cigarette maker reported net profit of Rs 4,141.93 crore in the quarter ended December 31, 2019, compared to Rs 3,209 crore in the corresponding quarter last year.
Hindustan Unilever Gains After Reporting Profit Of Rs 1,616 Crore In December Quarter
FMCG major Hindustan Unilever gained 2.3 per cent at Rs 2,081 in a soft market after reporting a 12 per cent year-on-year rise in standalone profit at Rs 1,616 crore for the December quarter compared with Rs 1,444 crore in the same quarter last year.
Sales for the quarter rose 3.62 per cent to Rs 9,696 crore from Rs 9,357 crore in the year-ago period.
Sensex, Nifty Recover Early Losses; HUL, ITC Gain After Earnings
The stock markets recovered early losses led by gains in in Hindustan Unilever and ITC after they reported earnings after market hours on Friday. The Sensex which fell over 300 points was down 45 points at 40,678 and the Nifty was at 11,947, down 15 points.
Ten of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Oil & Gas index's nearly 1 per cent gain. Realty, Auto and FMCG indexes also rose between 0.5-0.7 per cent each.
On the flipside, S&P BSE Power index was down 1 per cent.
Sensex Falls Over 300 Points, Nifty Near 11,900
The S&P BSE Sensex fell as much as 309 points and the Nifty 50 index was close to its important psychological level of 11,900 ahead of the Budget announcements by Finance Minister Nirmala Sitharaman later in the day.
The losses in domestic markets came on the back of sharp losses in US markets overnight after President Donald Trump on Friday announced public health emergency in response to the coronavirus outbreak in China and ordered up to 14-day quarantine for citizens returning from China's Hubei province and denying entry to some foreigners.
Budget Likely To Increase Spending To Spur Growth
Prime Minister Narendra Modi's government is likely to increase state spending on infrastructure and offer some tax incentives in its 2020/2021 budget on Saturday, aiming to get growth back up from its lowest in a decade.
In its annual economic report, released on Friday, the government predicted that economic growth would pick up to 6.0 to 6.5 per cent in the fiscal year beginning April 1, but warned that it may have exceed its deficit target to revive growth.
India is facing its worst economic slowdown in a decade. The government estimates economic growth this year, which ends on March 31, will slip to 5 per cent, the weakest pace since the global financial crisis of 2008-09.