Representational Image. Photo: ANI
Mumbai: Benchmark BSE Sensex zoomed over 1,200 points in the afternoon trade on Wednesday as market investors cheered the Union budget proposals presented by Finance Minister Nirmala Sitharaman in the Lok Sabha.
The 30-share BSE barometer zoomed 1,223.54 points or 2 per cent to its intra-day high of 60,773.44. The broader NSE Nifty jumped 310.05 points or 1.75 per cent to 17,972.20.
"The market had mixed expectations on the budget presuming it to be populist and low elbowroom for the government ahead of the slowing economy, high inflation and interest rates. However, the government has taken it to a new zone with a well-tuned perfection between growth and stability.
"The rise in capital expenditure by 33 per cent to Rs 10 lakh crore is the shot in the arm heading a multiplier effect on the economy. While high amount of schemes and tax benefit to rural economy and taxpayers will enhance consumption growth in India. Much beyond expectations, a win-win for households and corporates. It is a 10 on 10 budget," said Vinod Nair, head of Research at Geojit Financial Services.
Sunil Damania, Chief Investment Officer, MarketsMojo, said said that overall, the budget is “excellent”. “The absence of negative news is a tremendous source of optimism. And the stock market has been ecstatic about this budget.
"The relief on personal income tax by providing rebate up to Rs 7 lakh and making changes in the slab rate under the new income-tax regime comes as a major boost to the Indian markets. The FM did not tinker with the capital gains which has cheered the markets," said Sanjay Moorjani, Research Analyst, SAMCO Securities.
Finance Minister Nirmala Sitharaman on Wednesday tweaked the slabs to provide some relief to the middle class by announcing that no tax would be levied on annual income of up to Rs 7 lakh under the new tax regime.
She also allowed a Rs 50,000 standard deduction to taxpayers under the new regime, where assessees cannot claim deductions or exemptions on their investments.
Meanwhile, an overall positive trend in the global markets also cheered investors.
From the Sensex pack, ICICI Bank, Larsen & Toubro, HDFC, HDFC Bank, IndusInd Bank, Tata Steel and Kotak Mahindra Bank were the major gainers.
On the other hand, Titan and Mahindra & Mahindra were the laggards.
"India Budget 2023 has offered a multi-dimensional view. The 3 Cs which stand out are - capex increase - consumption boost - capital gains tax status quo. Mindful of the fact that there is hardly any space for fiscal expansion. FY 24 FD is pegged at 5.9% and expected to see progressive reduction by FY 2026. Clearly a bull's-eye budget satisfying most strata of the society and of course a thumbs up from the market as well," said Lakshmi Iyer, CEO-Investment Advisory, Kotak Investment Advisors Ltd.
Sitharaman on Wednesday announced hiking the capital expenditure by 33 per cent to Rs 10 lakh crore for infrastructure development for 2023-24 and will be at 3.3 per cent of the GDP.
"A 33 per cent increase in capital expenditure to 10 lakh crore rupees, the highest ever will go a long way in building roads, ports, and airports — crucial for making India a reliable investment destination. Investment of Rs 2.4 lac crore in Railways is commendable," said Anand Rathi, Founder & Chairman, Anand Rathi Group.
Elsewhere in Asia, equity markets in Seoul, Tokyo, Shanghai and Hong Kong were trading higher.
Markets in the US ended in positive territory on Tuesday.
Sitharaman on Wednesday listed seven priorities of Union Budget 2023-24, including infrastructure, green growth, financial sector and youth power.
She said four transformative opportunities can be used in Amrit Kaal for enhancing economic empowerment.
"In keeping with its focus on inclusive growth, the Union Budget has hiked outlays on infrastructure and agriculture which in our view would have a force multiplier impact on the economy," S Ranganathan, Head of Research at LKP Securities, said.
International oil benchmark Brent crude climbed marginally by 0.05 per cent to USD 85.50 per barrel.
Foreign Institutional Investors (FIIs) offloaded shares worth Rs 5,439.64 crore on Tuesday, according to exchange data. PTI