Skip to main content



A clutch of tax proposals in the Budget 2016 gave the market some anxious moments as the benchmark Sensex today reeled under heavy losses but recovered just in time to end lower by over 152 points on some buying support from domestic institutions. Sentiment was hit mainly by a proposal for a higher dividend distribution tax on those earning more and a one on raising securities transaction tax in some categories. Jaitley proposed 10 per cent tax on dividends above Rs 10 lakh and raising securities transaction tax (STT) to 0.05 per cent from 0.017 per cent.
Putting all speculation to rest, Finance Minister Arun Jaitley today chose to play safe and opted for fiscal prudence by proposing to keep the deficit at 3.5 per cent of GDP in 2016-17.
There were sharp fluctuations throughout though, with the market swinging as much as close to 850 points. Intra-day, it tanked nearly 660 points.
Soon after, buzz of a rate cut by RBI grew louder and helped improve sentiment.
The 50-share Nifty cracked below the 7,000-level. A senior Finance Ministry functionary said the Budget can not be dictated by the markets. "It is high time the North Block stopped looking at markets to see whether the Budget is good or bad," he added. The BSE Sensex started on a higher note and ended at 23,002, a fall of 152.30 points, or 0.66 per cent. On the Budget day in 2015, the Sensex had gained 141.38 points. The NSE Nifty ended at 6,987.05, down 42.70 points, or 0.61 per cent. It hovered between 7,094.60 and 6,825.80. "In the near term, the setbacks are PSU banks' recapitalisation of Rs 25,000 crore is below estimate, hike in STT for F&O options, DDT for HNIs, no reduction in tax for corporates and no draft about introduction of GST," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services. Auto companies saw selling pressure and fell up to 4.88 per cent after Jaitley proposed to levy an infrastructure cess of up to 4 per cent on various categories of vehicles. Major losers were Maruti Suzuki, Tata Motors and M&M.
Cigarette stocks, led by ITC, too reeled, plunging by up to 8 per cent as excise duty on various tobacco products other than beedi was raised by about 10-15 per cent in the Budget. Mood got a lift after a budgetary allocation of nearly Rs 36,000 crore for the farm sector and a higher credit target aimed at doubling farmer incomes in five years.
In the agriculture segment, Kaveri Seed Company and Rallies gained big, but Jain Irrigation and Monsanto India succumbed to profit-booking and ended lower.
Besides, the government's plan to defer implementation of the General Anti-Avoidance Rule (GAAR) from April 1, 2017 had a positive impact, they said. Among Sensex losers, ONGC, BHEL, Infosys, L&T, Axis Bank, HUL, Wipro, Adani Ports, Sun Pharma, Cipla, TCS, Asian Paints, NTPC and Coal India fell by up to 9.72 per cent. As many as 20 out of the 30-share Sensex pack lost while 10 led by ICICI, HDFC Bank, RIL, Lupin and HDFC rose. Among BSE sectoral indices, infrastructure fell by 2.12 per cent, followed by IT 2.11 per cent and technology 2 per cent, while capital goods tripped 1.99 per cent, consumer durables 1.75 per cent and oil and gas 1.50 per cent. Other Asian indices ended in the negative zone while Europe was trading lower. 

Sensex down for 8th time in 10 yrs

With a fall of over 150 points in benchmark Sensex on the Budget Day today, this is the eighth time in last 10 years that the markets have suffered losses on the most important listed economic event of the year.

- In 2015, the Sensex had gained 0.48 per cent - recording its first rise on a Budget day in 4 years.

- In the previous three sessions on Budget 2014, 2013 and 2012, the index had ended lower.

- Prior to that in 2011 and 2010, markets had gained 0.69 per cent and 1 per cent, respectively.

- Sensex had witnessed a sharp fall of 5.83 per cent in 2009 when Budget was presented.

- Markets saw a similar fate in the previous two years, with a fall of 1.37 per cent and 4 per cent in 2008 and 2007, respectively.

- In 2006, the blue-chip index had gained 0.85 per cent.


Popular posts from this blog


Telecom stocks today surged up to 8 per cent after the recent increase in Reliance Jio tariffs, which is largely seen as positive for the sector. Shares of Bharti Airtel jumped 4.99 per cent to close at Rs 497.50 on BSE. Bharti Airtel was the biggest gainer among the 30-share index components. The scrip of Idea Cellular soared 7.74 per cent to end at Rs 98.15 and Reliance Communications zoomed 7.60 per cent to Rs 17.70. Reliance Jio made its service dearer by about 15 per cent for its popular 84-day plan at Rs 459 from October 19, under which subscribers get 1GB 4G data at high speed per day. The company restructured its various schemes by reducing their validity period. The recent increase in Reliance Jio tariffs will increase its average revenue per user by up to 20 per cent and is a positive for the telecom sector, which is seeing a rapid consolidation, says a Philip Capital report. Established telecom sector players have seen huge reduction in their margins. Idea Cellular and Reli…


Stock markets ended on a flat note on Wednesday, just below their record highs, but finished Samvat 2073 with robust gains of over 16 per cent. Equities added over Rs 25 lakh crore to investors' wealth this Samvat year. The benchmark Sensex has gained 4642.84 points, or 16.61 per cent, in the Hindu Samvat year 2073, while the broader NSE Nifty surged 1572.85 points, or 18.20 per cent during this period.
Small loss in last session
In the last session of the Samvat 2073 on Wednesday, the 50-share Nifty fell by 23.60 points or 0.23 per cent to close at 10,210.85 after moving between 10,175.75 and 10,236.45. The Sensex resumed lower at 32,518.56 and fell further to a low of 32,462.85 before ending at 32,584.35, down 24.81 points or 0.08 per cent. Investors adopted a cautious approach ahead of the long Diwali weekend, while a weak rupee too affected sentiment, brokers said.
- Axis Bank emerged as the worst performer among Sensex components, tumbling 9.52 per cent following a spike in ba…


The Aditya Birla group has entered the top valuation league with a market cap of over USD 50 billion post listing of financial services arm Aditya Birla Capital (ABCL), but Tatas remain on top with over USD 132 billion.
The combined market valuation of the Kumar Mangalam Birla-led listed companies stood at Rs 3,42,354.87 crore (USD 53.5 billion) at the end of Friday's trade.
Among various listed companies of the group, UltraTech Cement's valuation stood at Rs 1,10,097.70 crore at the end of Friday's trade while that of Grasim Industries was Rs 76,881.73 crore.
The newly-listed Aditya Birla Capital's market capitalisation was over Rs 55,000 crore, Hindalco (Rs 54,607.09 crore), Idea Cellular (Rs 32,064.91 crore), Aditya Birla Fashion and Retail (Rs 13,155.73 crore) and Aditya Birla Money (Rs 547.71 crore).
Among Indian conglomerates, the Tata group remains on the top in terms of total valuation of listed firms with about Rs 8,46,567 crore (USD 132.5 billion).
There are 29 pu…