The BSE Sensex plummeted 987 points on Saturday to close below the key 40,000-mark, led by an intense broad-based selloff after the Union Budget for 2020-21 failed to live up to market expectations.

Experts said the Budget has been below par considering investors had extremely high expectations from the government to revive the economy.

Nosediving nearly 1,275 points from the day’s high, the 30-share index ended 987.96 points, or 2.43 per cen,t lower at 39,735.53. It hit an intra-day low of 39,631.24 and a high of 40,905.78.

Similarly, the 50-share NSE Nifty plunged 318.30 points or 2.66 per cent to 11,643.80, sinking below the 2019 Budget day level of 11,811.15.

ITC was the top laggard in the Sensex pack, tanking 6.97 per cent, followed by L&T, HDFC, SBI, ONGC, ICICI Bank and IndusInd Bank.

On the other hand, TCS rallied 4.13 per cent, followed by HUL, Nestle India, Tech Mahindra and Infosys.

Presenting the Union Budget for 2020-21, Finance Minster Nirmala Sitharaman proposed to remove dividend distribution tax on companies, effectively shifting the tax burden to recipients at the applicable rate.

The Finance Minister pegged the fiscal deficit at 3.8 per cent in the current fiscal, compared to the earlier target of 3.3 per cent of GDP.

In her second Budget presentation, the finance minister said certain government securities will be open for foreign investors, adding that the Centre plans to increase investment limit for FPIs in corporate bonds from 9 per cent to 15 per cent.

According to Krishna Kumar Karwa, Managing Director - Emkay Global Financial Services, investors are disappointed with no relief on long term capital gains (LTCG) tax and lack of big bang sectoral stimulus.

“The removal of Dividend Distribution Tax seen as a continuation of earlier step of reducing corporate tax is well appreciated and sends the right signals to local and global investors,” he added. PTI

Insurance companies' shares hit hard

Shares of life insurance companies were down 5-10% as finance minister Nirmala Sitharaman, while presenting the Union Budget on Saturday, announced a sharp cut in tax rates for those who do not avail of any exemptions.

While shares of HDFC Life Insurance Company were down nearly 5%, those of ICICI Life Insurance Company and SBI Life Insurance Company slumped 10% lower each. 

BSE SENSEX CLOSE

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ITC shares down over 6%

Shares of ITC fell over 6 per cent  to hit a 52-week low of Rs 218.40 on the NSE today (February 1) after the government proposed to increase excise duty on tobacco in the Union Budget.

IDBI Bank shares surge 10 per cent after FM announces sale of balance govt holding

Shares of IDBI Bank zoomed 18 per cent on Saturday after Finance Minister Nirmala Sitharaman said the government’s balance holding in the company will be sold.

The scrip advanced 17.55 per cent to Rs 39.85 on the BSE.

On the NSE, it jumped 18 per cent to Rs 39.90.

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Budget blues hit Sensex by 800 points, Nifty 245 points

Despite a host of feel-good proposals , market fails to cheer, as the Sensex slumped over 700 points after the in the Budget 2020 presentation by the Nirmala Sitharaman. The BSE Sensex slumped 710 points at 40,013.80 and the NSE Nifty 163 points to 11,799.20.

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Financial shares down

Among the components of the S&P BSE Finance index, SBI Life Insurance Company Ltd (down 9.89%), ICICI Prudential Life Insurance Company Ltd (down 8.8%),Max Financial Services Ltd (down 8.17%),IIFL Finance Ltd (down 6.53%),HDFC Life Insurance Company Ltd (down 6.53%), were the top losers.

Among the other losers were Nippon Life India Asset Management Ltd (down 6.15%), Equitas Holdings Ltd (down 5.73%), Indiabulls Housing Finance Ltd (down 5.4%), Bajaj Finserv Ltd (down 5.09%), and Magma Fincorp Ltd (down 4.98%).

Sensex, Nifty shed over 1.25%

Indian stock indices got off to a choppy start  in a special trading session on Saturday. The market started falling sharply after 1 pm.

The 30-share BSE index opened marginally higher and moved between a high of 40,905.78 and a low of 39,930.46.

The Sensex was quoted at 40,239.52, down by 483.97 points or 1.19% from its previous close of 40,723.49

Similarly, the broader NSE Nifty lost 150.35 points, or 1.26 per cent, at 11,811.75.

Reuters adds:

“We opened negative in the aftermath of the correction in the U.S. market due to concerns over the China virus,” said A.K Prabhakar, head of research at IDBI Capital.

“But from here on, the domestic market might recover since we have seen significant correction over the past few days and on good results from SBI and Hindustan Unilever.”

NIFTY 50 INDEX CHART at 1.33 pm Feb 1, 2020

BREAKING NEWS

Dividend distribution tax is only payable at the investors' end and need not be paid by the company, says FM in the Budget.

New Income tax Rates proposed in Budget

New Tax Structure

Individuals earning between:

Rs 5 lakh - Rs 7.5 lakh at 10% tax rates

Rs 7.5- Rs 10 lakh at 15% tax rates

Rs 10 - Rs 12.5 lakh at 20% tax rates

Dairy, pump stocks cheer on FM's announcements

Shakti Pumps up 13%, Hester Biosciences gains 2.5% as Sensex, Nifty hover negative

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Rs 3.50 lakh cr infused as capital in public sector banks in past years, says FM

How PSU STOCKS MOVED

Breaking News

It is proposed in the Budget that Insurance coverage for bank deposits has been increased from Rs 1 lakh at present, to Rs 5 lakh hereafter.

Check for Budget Live

Click to read Budget Live:

Sensex stocks price as at 12.35 pm

BSE TELECOM CHART

New scheme for manufacturing cell phones, semi conductors, electronic devices

Finance Minister Nirmala Sitharaman on Saturday proposed a scheme for manufacturing cell phones, semi conductors and other electronic devices.

In her second Budget presentation, the finance minister said, India needs to boost domestic manufacturing and attract investment in electronic manufacturing.

The vision of the government is to make each district an export hub, Sitharaman said.

The government aims to facilitate clearances even at the state level and also set up investment clearance cell to give investors free investment advisory, she added.

Sitharaman also said youth and fishery extension work will be enabled by rural youth as ‘Sagar Mitras’ and 500 fish farmer organisations will be set up.

She further said milk processing capacity will be doubled by 2025. - PTI

Budget: National Technical Textile Mission proposed at Rs 1,480-cr outlay

Finance Minister Nirmala Sitharaman on Saturday proposed National Technical Textile Mission with an outlay of Rs 1,480 crore over four years to cut down imports.

Presenting the Budget for 2020-21, Sitharaman said as much as Rs 27,300 crore has been provided for development and promotion of industry and commerce.

The Finance Minister also said digital refund of duties and taxes of centre, states and local bodies to exporters will be allowed from this year.

On infrastructure, she said the government plans to set up project preparation facilities for infrastructure sector and a national logistic policy will come up soon.

Sitharaman noted that a Rs 103 lakh crore infra project pipeline has been launched in December.

Delhi-Mumbai Expressway will be completed by 2023 and Chennai-Bengaluru Expressway will be launched, the minister added.

She also said 550 wi-fi facilities have been commissioned at railway stations. - PTI

Mid-session

Sensex, Nifty stay cautious

Market benchmarks Sensex and Nifty turned cautious in mid-session on Saturday as Finance Minster Nirmala Sitharaman began presenting the Union Budget 2020-21 in Parliament.

After gyrating over 450 points in the morning session, the 30-share BSE Sensex was trading 60.58 points, or 0.15 per cent, lower at 40,647.24 at 12.05 pm.

Similarly, the 50-share NSE Nifty was down 20.05 or 0.17 per cent, to 11,942.05.

Sensex was trading over 150 points higher ahead of the Budget presentation.

Presenting the Budget for 2020-21, Sitharaman said fundamentals of the economy were strong and inflation had been well contained, while banks cleaned up accumulated loans.

She said this Budget is aimed at boosting income and purchasing power of people.

Top gainers in the Sensex pack included Maruti, HUL, Bajaj Finance, UltraTech Cement, TCS, Asian Paints and Bajaj Auto.

However, PowerGrid, NTPC, Tech Mahindra, Tata Steel and ONGC were trading in the red.

The forex market remained closed for the weekend. - PTI

All  stay quiet: Stock brokers are watching avidly the Finance Minister Nirmala Sitharaman's speech on Saturday, February 1, 2020, even as the Sensex was trading quiet in the first hour of the budget proposals - Paul Noronha

All  stay quiet: Stock brokers are watching avidly the Finance Minister Nirmala Sitharaman's speech on Saturday, February 1, 2020, even as the Sensex was trading quiet in the first hour of the budget proposals - Paul Noronha

Govt sets agri credit target at Rs 15 lakh cr for FY21: Sitharaman

The government has pegged the agricultural credit target at Rs 15 lakh crore for fiscal 2020-21, Finance Minister Nirmala Sitharaman said on Saturday.

In her second Budget presentation, the Finance Minister also said Nabard refinance scheme will be expanded.

She further said Indian Railways will set up Kisan Rail in public—private partnership (PPP) mode for cold supply chain to transport perishable goods.

Also, Krishi Udaan will be launched by Civil Aviation Ministry to transport agri-products to national as well international destinations.

The government will also promote one horticulture crop in one district on cluster basis, she said, adding that horticulture with 311 MT exceeded production of food grains.

She also said the government will take steps for conservation of marine fishery, and self help groups will be allowed to set up village agri-storage facilities. - PTI

FM lays stress on agriculture, farmers welfare, doubling of their income and Education in the first 45 minutes of Budget Speech in Parliament.

Read more on Live Budget updates :

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Economic Survey sets the tone for Budget 2020

The Survey's theme is 'Wealth Creation'

The Indian economy, which is buffeted with several challenges, is expected to grow 6-6.5 percent in 2020-21, according to the Economic Survey tabled in Parliament on Friday.

This GDP growth forecast is seen as somewhat ambitious, given that Indian economy is widely expected to close current fiscal with 5 per cent growth.

The latest Economic Survey for 2019-20 was tabled in both Houses of Parliament by Finance Minister Nirmala Sitharaman

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A stock broker prays at the BSE even while the FM Nirmala Sitharaman reads out the budget as seen on a television behind. Picture: Paul Noronha

A stock broker prays at the BSE even while the FM Nirmala Sitharaman reads out the budget proposals as seen on a digital screen behind. Picture: Paul Noronha

The bronze sculpture of a charging bull at Bombay Stock Exchange is being dusted upon on the day of Union Budget in Mumbai on Saturday, February 1, 2020. Picture: Kamal Narang

A clean up act: The bronze sculpture of a charging bull at Bombay Stock Exchange (BSE) is being dusted upon on the day of Union Budget in Mumbai on Saturday, February 1, 2020.  Picture: Paul Noronha

SBI Q3 comment: One-off recovery aids earnings, but slippages rise

The performance of leading banks in the December quarter followed a similar narrative. While recovery from a large account under the IBC has bumped up profits, rise in slippages from certain sector-specific events have not moved the needle much on the overall asset quality front.

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Finance Minister Nirmala Sitharaman is seen with her main thinktank before presenting the Union Budget in Parliament

Finance Minister Nirmala Sitharaman is seen along with her team of main thinktank advisors just before presenting the Union Budget in Parliament today, Feb 1, 2020.

Picture: Kamal Narang

A positive sign:

A bright and sunny day in Mumbai with a clear sky seen over the Bombay Stock Exchange (BSE) building on Saturday, Feb 1. Would the Union Budget be bright too? Picture: Paul Noronha

Budget 2020: FM to push for growth despite fiscal headwinds and tough balancing act

Budget day is upon us and by all counts Finance Minister Nirmala Sitharaman is likely to in the next few hours deliver a “growth-oriented, capital market-friendly and pragmatic” budget with main thrust on increasing demand in the economy, especially in semi-urban and rural India.

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The Sensex after opening lower by 200 points, recovered most of its losses.

As of now, The Sensitive index was quoted lower by 70.99 points at 40,652.50

Opening Bell

Stock market indices slumped tracking global weakness  led by losses in heavyweights such as Tata Steel, HDFC Bank, HCL Tech, Infosys, TCS, Reliance, HeroMotoCorp as they fell between 1 per cent and 3 per cent. Investors hope for some favourable proposals from the Union Budget that could alter the weak market sentiment.

Global markets extended losses as China took more drastic steps to combat the coronavirus.

The 30-share BSE index opened marginally higher by 30 points and immediately fell 235 points in the first few minutes of trade. At present, the Sensex was quoted at 40,592.16, down by 131 points

Similarly, the broader NSE Nifty lost 51.40 points, or 0.43 per cent, at 11,910.70.

Bud-get or Bud-give?

The Union Budget, to be presented on February 1, is an event that is more hope and hype than it ought to be. Budgets ought not to be a method to tinker fiscal policy with, but they often do.

There are lots of expectations that this year’s Budget will have lots of measures to boost a flagging economy. With tax revenues being lower than expected, there is little fiscal room to indulge in a lot of giveaways.

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Amara Raja, Sobha, Karur Vysya Bank results

About 25 companies will declare their quarterly results for the period ended December 2019 on Saturday. Among these are Amara Raja Batteries, BLS International, Chambal Fertilizers, Garden Reach Shipbuilders & Engineers, IndBank Merchant Banking, Karur Vysya Bank, Kopran, Krebs Biochemicals, Lumax Industries, Mahidra Holidays & Resorts, Poly Medicure, Relaxo Footwears, Sarda Energy, Seshasayee Paper, Sobha, Thyrocare Technologies and Zen Technologies.

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