MUMBAI: The Bombay Stock Exchange’s Sensex bounced back led by gains in FMCG, auto, banks and realty space as the Finance Minister Pranab Mukherjee tabled Union Budget for FY12-13 in Lok Sabha.
The minister expect fiscal deficit to slip to 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.
“We have to give him the benefit of doubt. He has done his numbers. He has admitted that he could not meet it last year. It was a difficult year. He has increased excise duties and customs duty in some aspects to increase the indirect collection, indirect tax revenues, so I would accept it.
He has been very practical to say we will not grow more than 7.6%. He is not taking the targets to 8 and 9, so I would feel comfortable with a 5.1% fiscal deficit. I would feel it is reasonably fair. We have to see how the year goes on but it is realistic,” said Deepak Parekh, Non-Executive Chairman, HDFC.
At 1:50 pm; the Sensex was at 17744.45, up 68.60 points or 0.39 per cent. It touched intraday high of 17871 and low of 17534.65.
The National Stock Exchange’s Nifty was at 5407.50, up 27 points or 0.50 per cent. The broader index touched a high of 5445.65 and low of 5340.90 in trade so far.
BSE Midcap Index up 0.55 per cent and BSE Smallcap Index moved 0.05 per cent higher.
Amongst the sectoral indices, BSE FMCG Index was up 1.70 per cent, BSE Auto Index gained 1.45 per cent and BSE Bankex moved 1.25 per cent higher. BSE Oil&gas moved 2.38 per cent lower, BSE Healthcare Index declined 0.97 per cent and BSE Power Index was down 0.43 per cent.
M&M (3.65%), ITC (3%), HDFC Bank (1.99%), DLF (1.61%) and Maruti Suzuki (1.50%) were the major Sensex gainers.
Sun Pharma (-6.42%), ONGC (-4.59%), Reliance Industries (-2%), Jindal Steel (-1.94%) and NTPC (-1.20%) led the losers pack.
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