MUMBAI: The National Stock Exchange’s Nifty was near day’s lows as profit booking intensified in oil&gas majors Reliance Industries, ONGC and Cairn India after the Finance Minister Pranab Mukherjee announced cess on crude petroleum oil products as he tabled Union Budget for FY13 in Lok Sabha.
“Budget looks more real than what it was looking last year and it is exactly in line with what was the market was expecting. So there is no negative surprises, neither there are any huge positive surprises.
The negative camp was thinking that given the results of state elections he could actually opt to go and throw a lot of goodies on the common man and would not care about the fiscal consolidation. The good news that he has cared for fiscal consolidation and this number of 5.1 per cent to me looks realistic,” said Madhusudan Kela, Head-Equities, Reliance Mutual Fund.
The fiscal deficit is expected at 5.1 per cent in FY13. The minister expects current account deficit and inflation to fall next year. Current account deficit is expected to be at 3.6 per cent in FY12.
Central subsidies are to be under 2 per cent of GDP in FY12-13. The minister plans to bring subsidies to 1.7 per cent of GDP in next three years.
The personal income tax slab has also been changed. No income tax upto Rs 2 lakh per annum, 10% tax on income from Rs 2-5 lakh, income from Rs 5-10 lakh – tax will be 20% and 30% for income above Rs 10 lakh.
The government has reduced Securities Transaction Tax by 20 per cent on delivery transactions to 0.1 per cent.
At 2:35 pm; the Nifty was at 5310.40, down 70.10 points or 1.30 per cent. The broader index touched a high of 5445.65 and low of 5309.65 in trade so far.
The Bombay Stock Exchange’s Sensex was at 17472.07, down 203.78 points or 1.15 per cent. It touched intraday high of 17871 and low of 17472.07.
BSE Midcap Index slipped 0.65 per cent and BSE Smallcap Index moved 0.76 per cent lower.
Amongst the sectoral indices, BSE Oil&gas Index fell 3.39 per cent, BSE Capital Goods Index declined 2.47 per cent and BSE Power Index was down 2.27 per cent. BSE FMCG Index was up 1.46 per cent.
Sun Pharma (-7.55%), ONGC (-5.86%), Cairn India (-5.04%), BHEL (-4.41%) and Reliance Industries (-3.14%) led the Nifty losers pack.
ITC (2.89%), M&M (1.74%), Jaiprakash Associates (1.09%), Ambuja Cements (0.73%) and HDFC (0.66%) were the major gainers.
Market breadth was negative on the NSE with 702 gainers against 721 losers.