Volatile Sensex logs 1st Budget day gain in 4 years, up 141 points
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Volatile Sensex logs 1st Budget day gain in 4 years, up 141 points

Last Updated: Saturday, February 28, 2015, 17:18

Volatile Sensex logs 1st Budget day gain in 4 years, up 141 points

Mumbai: The Modi government's first full-year Budget turned out to be a volatile affair for stocks with the Sensex swinging 700 points, but promise of lower corporate taxes and deferral of GAAR helped the benchmark finally end 141.38 points up -- the first rise on a Budget day in 4 years.

The Nifty rose 57 points to finish above the 8,900-level.

Shares of Banking, Healthcare and Auto sectors shot up on good buying while FMCG, Consumer Durable and Power counters fell on selling pressure. Scrips of cigarette makers, led by ITC, declined on a proposal to hike excise duty on cigarettes.

While participants today said they were initially disappointed on lack of big-bang reforms in Budget, sentiments were lifted after Finance Minister Arun Jaitley's announcement of cut in corporate tax by 5 per cent to 25 per cent over four years starting April 2016.

Besides, the proposal to defer applicability of General Anti-Avoidance Act (GAAR) by two years also boosted buying, they said, while adding the government's projections on growth and commitment on fiscal discipline front supported sentiment.

The BSE Sensex resumed higher at 29,411.33 and hovered in a wide range of 28,882.02 and 29,560.32. A recovery in the last two hours helped the Sensex end at 29,361.50, logging a gain of 141.38 points or 0.48 per cent.

In the previous three sessions on Budget 2014, 2013 and 2012, the Sensex had ended with loss.

The NSE Nifty also moved up by 57.25 points to close at 8,901.85, after hovering between 8,751.35 and 8,941.10.

"Given the constraints of the fiscal space, it is a well balanced and well thought through budget. It will unleash India's growth potential in the coming years and make it a preferred investment destination. Rationalisation of corporate taxes, deferment of GAAR rules and ease of doing business will in general improve confidence," said Shachindra Nath, Group CEO, Religare Enterprises.

Among Sensex constituents, Axis Bank topped the gainers by surging 8.1 per cent. Government's initiative to bring in a Comprehensive Bankruptcy code for the ease of doing business by 2015-16 is a big welcome step from the banking sector perspective, said S Ravi, practicing chartered accountant.

Other major Sensex gainers were Tata Motors, ICICI Bank, Dr Reddy, Hindustan Unilever, Cipla, GAIL, Tata Steel, HDFC Bank, Infosys, RIL and M&M. They gained between 1-3 per cent.


PTI

First Published: Saturday, February 28, 2015, 17:18




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