Indian equity benchmarks showed major gains after Finance Minister declared the fiscal deficit target at 3.4 per cent of GDP for Financial Year 2019-20 during the Budget 2019 speech and proposed no tax on the income of up to Rs 5 lakhs per annum. About 1303 shares traded in green, 935 shares declined, and 117 shares remained unchanged, according to Money Control.
Bombay Stock Exchange (BSE) Sensex jumped 500 points following the finance minister’s announcement to increase the income tax exemption limit to Rs 5 lakh, reports BloombergQuint.
The Sensex today opened at 36,311.74 and reached the high of 36,706.41 points. The latest figures set the Sensex at 36,691.99, an increase of 435.30 points. Similarly, the NIFTY 50 opened today at 10,851.35 and reached a high of 10,981.55 points. The latest figures put it at 10,980.15, an increase of 149.20 points.
The consumption stocks, especially the NIFTY Consumption index, witnessed a good surge after Finance Minister Piyush Goyal announced tax rebate up to
Rs 5 lakh.
In addition to Consumer stocks, The Dalal street witnessed gains led by buying in auto, realty and pharma stocks. The major stocks like HDFC, HDFC Bank, Maruti and Reliance contributed heavily to the Sensex gains.
India’s Defence budget for FY 2018-19 was 2.95 lakh crores. Finance Minister has announced that defence budget will now get an increase to an all-time high of Rs 3 lakh crore. “The Defence Budget has crossed Rs. three lakh crore for the first time. Additional funds will be provided, if necessary,” said Piyush Goyal. On the heels of this, defence stocks like Larsen and Toubro showed an upward trend. The stocks like Bharat Electronics, Walchandnagar Industries, Reliance Naval and Bharat Dynamics also showed a similar trend.
As it was speculated earlier, the Budget 2019 featured numerous sops to farmers to counter farmer distress. The biggest of them all was the declaration of structured income support to farmers through the Pradhan Mantri Krishan Samridhi Yojana. After the announcement, Agriculture stocks like Nagarjuna Fertilizers traded at 5.92 per cent higher on the National Stock Exchange. Similarly, companies which are connected to Agriculture products like Mahindra and Mahindra, Monsanto India also showed a green trend.