Budget 2019: Sensex off day's high; Nifty slips below 10,900
Benchmark indices shot up in Friday’s trade after the Finance Minister Piyush Goyal doubled income tax exemption limit to Rs 5 lakh. Consumer and consumer discretionary stocks rallied.
However, market cooled off later on losses in shares of heavyweights, including ICICI Bank, Vedanta, Axis Bank and YES Bank.
Around 2:25 pm, the BSE Sensex was 149 points up at 36,406, while the NSE Nifty50 index was 39 points up at 10,870.
The government raised TDS exemption on deposits to Rs 50,000 from Rs 40,000 at present. Besides, the FM proposed no tax on notional rent on second occupied home.
Three crore tax payer are expected to be benefitted from the exemption. An increase in disposible income in the hands of tax payers is expected to give consumer companies.
Shares of largest two-wheeler maker Hero MotoCorp and largest passenger car maker Maruti soared 6 per cent and 5 per cent, respectively. Tractor major M&M and two-wheeler maker Bajaj Auto also rallied.
"Substantial growth in direct tax base, both in terms of number of tax payers and tax collection, should allow for reduction of direct tax rates," said Pranay Bhatia, Partner Tax & Regulatory Services, BDO India.
"The fiscal target is with in the comfortable limits and the Budget is not an overly populist one," said Pankaj Pandey, Head Research at ICICI Securities.
In his Budget speech, the FM not only tried to woo the middle class, but also tried to address rural stress.
Goyal unveiled a farm support scheme, under which the government plans to offer income support for marginal farmers at Rs 6,000 per year under a scheme called Kisan Samman Nish.
The scheme will benefit some 12 crore farmers. The FM set aside Rs 75,000 crore under the scheme.
Commenting on the same, noted economist Swanathana Iyer said the farmer income support scheme looks modest. “It is less than what’s already operational in Odissa and Telangana, The scheme is fiscally difficult, but manageable,” Iyer said.
“The interim budget was watched by the market on few important points like SOPs to small farmers, Incentive to the common man and in the overall will it be fiscal prudent. The outcome have been marginally better than expected by the market since it provides a good package considering the upcoming general election, while maintaining a rationality in the long-term. For the market it will provide a good signal in the short-term since the interim budget will not trouble the economic accountancy and populist agenda," said Vinod Nair, Head of Research, Geojit Financial Services.
However, market cooled off later on losses in shares of heavyweights, including ICICI Bank, Vedanta, Axis Bank and YES Bank.
Around 2:25 pm, the BSE Sensex was 149 points up at 36,406, while the NSE Nifty50 index was 39 points up at 10,870.
The government raised TDS exemption on deposits to Rs 50,000 from Rs 40,000 at present. Besides, the FM proposed no tax on notional rent on second occupied home.
Three crore tax payer are expected to be benefitted from the exemption. An increase in disposible income in the hands of tax payers is expected to give consumer companies.
Shares of largest two-wheeler maker Hero MotoCorp and largest passenger car maker Maruti soared 6 per cent and 5 per cent, respectively. Tractor major M&M and two-wheeler maker Bajaj Auto also rallied.
"Substantial growth in direct tax base, both in terms of number of tax payers and tax collection, should allow for reduction of direct tax rates," said Pranay Bhatia, Partner Tax & Regulatory Services, BDO India.
"The fiscal target is with in the comfortable limits and the Budget is not an overly populist one," said Pankaj Pandey, Head Research at ICICI Securities.
In his Budget speech, the FM not only tried to woo the middle class, but also tried to address rural stress.
Goyal unveiled a farm support scheme, under which the government plans to offer income support for marginal farmers at Rs 6,000 per year under a scheme called Kisan Samman Nish.
The scheme will benefit some 12 crore farmers. The FM set aside Rs 75,000 crore under the scheme.
Commenting on the same, noted economist Swanathana Iyer said the farmer income support scheme looks modest. “It is less than what’s already operational in Odissa and Telangana, The scheme is fiscally difficult, but manageable,” Iyer said.
“The interim budget was watched by the market on few important points like SOPs to small farmers, Incentive to the common man and in the overall will it be fiscal prudent. The outcome have been marginally better than expected by the market since it provides a good package considering the upcoming general election, while maintaining a rationality in the long-term. For the market it will provide a good signal in the short-term since the interim budget will not trouble the economic accountancy and populist agenda," said Vinod Nair, Head of Research, Geojit Financial Services.
