The BSE benchmark Sensex ended in negative terrain for the fourth straight week as investors remained unimpressed by the Union Budget proposals which they thought were aimed at tax mopping and may add to inflation despite reduction of Cash Reserve Ratio (CRR) by RBI last week.

In the Budget for 2012-13 presented yesterday, the Finance Minister, Mr Pranab Mukherjee, increased the service tax and excise duty to 12 per cent from 10 per cent, which will make cars, fridges, two-wheelers, ACs and washing machines costly.

Besides, a higher fiscal deficit of 5.9 per cent for the current fiscal overshadowed several positives, including lower income-tax and strong indications of more economic reforms. The hike in cess created a negative impact on oil explorers like ONGC, Cairn and RIL.

Investors not happy

Investors also remained unimpressed with the proposal to reduce the securities transaction tax (STT), as they were expecting it to be removed totally. STT, introduced in 2004, is levied on the sale and purchase of equities.

CNI Research CMD, Mr Kishor P. Ostwal, said: “STT reduction is no impressive as delivery volumes are not there in market.”

The 30-share Sensex resumed the week higher at 17,772.10 and hovered in a wide range of 18,040.69 and 17,426.58 before ending on Friday at 17,466.20, a net loss of 37.04 points or 0.21 per cent from its last close. The key index has dropped by 823.15 points or 4.5 per cent in the last four weeks.

The NSE 50-share Nifty also moved down by 15.65 points or 0.29 per cent to finish at 5,317.90. It has declined by 246.40 points or 4.42 per cent in the last four weeks.

Key interest rate unchanged

Interest rate sensitive realty and banking stocks fell as RBI kept its policy interest rate, the repo, unchanged at 8.5 per cent in mid-quarter review of the monetary policy on March 15.

Meanwhile, the Economic Survey, presented by the Finance Minister in the Lok Sabha, pegged the GDP growth at 6.9 per cent in 2011-12. The slowdown is mainly due to weakening industrial growth.

The Reserve Bank of India (RBI) last week announced a reduction of 75 basis points in banks’ Cash Reserve Ratio (CRR) requirement to ease the liquidity situation in the banking system.

Industrial production

Industrial production grew 6.8 per cent in January 2012 from a year earlier, sharply higher than a revised 2.5 per cent rise in December 2011, helped by a strong rebound in manufacturing output.

Inflation rose to 6.95 per cent in February because of a sharp increase in food prices, especially vegetables and protein-based items.

Sectoral indices

Among major indices, the BSE-Consumer Durable fell 2.2 per cent, the BSE-Realty 1.52 per cent, the BSE-Teck 1.46 per cent, the BSE-PSU 1.42 per cent, the BSE-Healthcare 1.35 per cent, the BSE-Power 1.16 per cent, the BSE-Oil & Gas 1.14 per cent and the BSE-IT dropped by 1.03 per cent.

However, the BSE-FMCG shot up by 2.94 per cent, the BSE-IPO 1.89 per cent and the BSE-Auto rose 1.35 per cent.

Gainers, losers

Major losers from the Sensex pack were Sun Pharma (4.36 per cent), DLF (3.68 per cent), Bharti Airtel (3.51 per cent), ONGC (3.37 per cent), TCS (3.32 per cent), HDFC Bank (2.89 per cent), Cipla (1.89 per cent), BHEL (1.77 per cent) and Bajaj Auto (1.58 per cent).

However, GAIL firmed up by 5.24 per cent, Hindalco (4.27 per cent), ITC (3.74 per cent), Tata Power (2.85 per cent), Tata Motors (2.68 per cent), Hero Motocorp (2.37 per cent) and Coal India (2.2 per cent).

The total turnover on the BSE and NSE rose to Rs 15,706.25 crore and Rs 70,560.33 crore, respectively from the last week-end level of Rs 11,633.53 crore and Rs 51,549.71 crore.

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