Key equity indices settled higher in volatile trade after the government presented a farm-friendly, consumption-oriented Budget ahead of the general elections.
The Sensex rose 212.74 points or 0.59% to settle at 36,469.43, its highest closing level since 21 January 2019. The index rose 521.45 points, or 1.44% at the day's high of 36,778.14. The index fell 35.37 points, or 0.10% at the day's low of 36,221.32.
The Nifty 50 index rose 62.70 points or 0.58% to settle at 10,893.65, its highest closing level since 22 January 2019. The index rose 152.50 points, or 1.41% at the day's high of 10,983.45. The index fell 17.50 points, or 0.16% at the day's low of 10,813.45.
Broader market underperformed. The S&P BSE Mid-Cap index rose 0.56%. The S&P BSE Small-Cap index rose 0.17%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On the BSE, 1197 shares rose and 1340 shares fell. A total of 140 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Auto index (up 2.65%), the S&P BSE Realty index (up 1.33%) and the S&P BSE FMCG index (up 1.14%), outperformed the Sensex. The S&P BSE Metal index (down 3.8%), the S&P BSE Basic Materials index (down 1.76%) and the S&P BSE Bankex (down 1.04%), underperformed the Sensex.
Presenting the interim budget for 2019-20, Finance Minister Piyush Goyal said the fiscal deficit for the current financial year is expected to be 3.4% of GDP. As per the Budget estimate, the fiscal deficit for 2018-19 was pegged at 3.3%.
Piyush Goyal announced that individual taxpayers having taxable annual income up to Rs 5 lakh will get full tax rebate and therefore will not be required to pay any income tax. As a result, even persons having gross income up to Rs 6.50 lakh may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance etc.
For salaried persons, standard deduction is being raised from the current Rs 40,000 to Rs 50,000. Further, TDS threshold on interest earned on bank/post office deposits is raised from Rs 10,000 to Rs 40,000. Piyush Goyal also proposed to exempt levy of income tax on notional rent on a second self-occupied house.
GST has been continuously reduced, resulting in relief of Rs 80000 crore to consumers, Finance Minister Piyush Goyal said. He claimed that most items of daily use for poor and middle class are now in the 0%-5% tax bracket.
The defence budget was increased for the first time to three lakh crore in 2019-20 for securing borders and to maintain preparedness of highest order and if necessary additional funds will be provided.
India is poised to become a 5 trillion dollar economy in the next five years and become a 10 trillion dollar economy in the next eight years. Piyush Goyal increased the budgetary allocation for India's flagship rural employment scheme, Mahatma Gandhi National Rural Employment Guarantee scheme. The scheme will get Rs 60000 crore as against Rs 55000 crore rupees promised in the last Budget.
For welfare of farmers and for doubling their income, historic decision taken to increase minimum support price (MSP) by 1.5 times the production cost for all 22 crops, Finance Minister Piyush Goyal said. He also announced a steady income support to help farmers in view of depleting income from agriculture.
To provide an assured income support to the small and marginal farmers, our Government is launching a historic programme namely 'Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)'. Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs 6,000 per year. This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal instalments of Rs 2,000 each. This programme will be funded by Government of India.
The interim budget was the last one presented by the current NDA government led by Prime Minister Modi, before the 2019 general elections in April. The Budget session of Parliament began yesterday. The session will conclude on 13th of next month.
On the stock market front, HCL Technologies (up 3.86%), Asian Paints (up 3.14%), Bajaj Finance (up 2.23%), HDFC (up 1.94%), Bajaj Auto (up 1.93%), Hindustan Unilever (up 1.93%) and Reliance Industries (up 1.65%), were the major Sensex gainers.
ICICI Bank (down 2.68%), Axis Bank (down 0.91%), Coal India (down 0.84%), Sun Pharmaceutical Industries (down 0.55%) and Tata Steel (down 0.54%), were the major Sensex losers.
Vedanta fell 17.82% to Rs 162.30. On a consolidated basis, Vedanta's net profit fell 21.06% to Rs 1,574 crore on 2.84% decrease in net sales to Rs 23,669 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 31 January 2019.
During the quarter ended 31 December 2018, as part of its cash management activities, Cairn India Holdings Limited (CIHL), a wholly owned foreign subsidiary of the company, paid a part sum of US$200 million (Rs 1,431 crore) towards purchase of an economic interest in a structured investment in Anglo American PLC from its ultimate parent, Volcan investments Limited ('Volcan'). The ownership of the underlying shares, and the associated voting interest, remains with Volcan. The investment has subsequently performed positively on an unrealised mark to market basis, Vedanta said in its financial results note for the December quarter.
Maruti Suzuki India rose 4.96% after the company said that its total sales rose 0.2% to 151,721 units in January 2019 over January 2018. Maruti Suzuki India said total domestic sales rose 1.1% to 142,150 units, while total exports fell 11% to 9,571 units in January 2019 over January 2018. The announcement was made during trading hours today, 1 February 2019.
Hero MotoCorp rose 7.48%. The company's net profit fell 4.5% to Rs 769.10 crore on 7.5% increase in net sales to Rs 7,864.82 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 31 January 2019.
State Bank of India (SBI) fell 3.09%. The bank reported net profit of Rs 3954.81 crore in Q3 December 2018 compared with net loss of Rs 2416.37 crore in Q3 December 2017. Total income rose 11.81% to Rs 70,311.84 crore in Q3 December 2018 over Q3 December 2017. The result was announced during trading hours today, 1 February 2019.
Bharti Airtel rose 1.45%. On a consolidated basis, Bharti Airtel's net profit fell 71.81% to Rs 86.20 crore on 0.99% increase in net sales to Rs 20,519.20 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 31 January 2019.
Yes Bank fell 4.45%. Yes Bank announced after market hours yesterday, 31 January 2019, that Reserve Bank of India (RBI) has approved the appointment of Mr. Ajai Kumar as interim MD & CEO of the bank from 1 February 2019 for one month or till Mr. Ravneet Gill assumes office as MD & CEO, whichever is earlier.
Power Grid Corporation of India rose 1.19%. The company's net profit rose 14.2% to Rs 2,331.17 crore on 12.8% increase in net sales to Rs 8,471.17 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 31 January 2019.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 71.2775, compared with its close of 71.085 during the previous trading session.
In the global commodities markets, Brent for March 2019 settlement was down18 cents at $60.66 a barrel. The contract rose 24 cents, or 0.39% to settle at $61.89 a barrel during the previous trading session.
Overseas, European stocks were trading higher Friday as market participants monitored a flurry of corporate results and key economic reports.
Asian stocks ended mixed even as the latest round of US-China trade talks ended on a positive note, with President Donald Trump saying he was optimistic that the two nations could reach the biggest deal ever made. Trump said on Thursday he will meet with Chinese President Xi Jinping soon to try to seal a comprehensive trade deal. However, no specific plans for the meeting were announced.
A private survey released on Friday suggested that manufacturing in China slowed in January. China's Caixin Manufacturing PMI was 48.3 in January, down from 49.7 in December.
South Korean exports shrank for the second straight month in January weighed by weaker prices for memory chips and petrochemicals. Exports fell 5.8% from a year earlier to $46.35 billion in January, a steeper decline than the prior month's revised 1.3% drop, according to preliminary data from the trade ministry on Friday. Imports also fell 1.7% from a year earlier to $45.02 billion after a revised 1.2% gain in the month before, producing a much narrower trade surplus of $1.34 billion.
US stocks closed mostly higher Thursday led by technology shares after some solid corporate reports. On the data front, the Chicago purchasing managers index for January came in at 56.7, down from 65.4 in December. New home sales in November rose to a seasonally adjusted annual rate of 657,000, up from 562,000 in October.
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