Markets close lower: Sensex falls 394 points

Benchmark indices ended the day lower, following the budget recommendations. The Sensex ended the day lower by 395 points, while the Nifty dropped 135 points.

Union Budget 2019 Reactions: Ajay Kakra, Leader-Food and Agriculture, PwC India

"The SFURTI yojana is also an excellent initiative to organize farmers under bamboo and honey farmers and artisans who have been working in an unorganised sector. Also, beneficial step for NE states where bamboo is major produce. Bringing the allied sector such as fisheries in focus can help the development of fishing communities and fisheries as an occupation. ASPIRE scheme aiming to create 100 technology and livelihood incubation centres will boost the entrepreneurial spirit amongst the youth and encourage them to come out with innovative business ideas in the agro sector. This will go along way to make the Indian agricultural industry fit for the future. The creation of 10000 FPO's targets the much-required need of the agriculture sector to organise the farmer community and helping them to undertake agro-trade in an effective and profitable way."

Union Budget 2019 Reactions: Adi Godrej, Chairman of Godrej Group

“Does not think the Budget is growth- oriented. "The stock market has also come down considerably".

Union Budget 2019 Reactions: Akhil Mittal, Senior Fund Manager, Tata Mutual Fund

"The government has laid steep revenue target on disinvestment. CPSE ETF have been successful to a large extent and government is looking for a greater participation from general public on this account. Hence government will offer an investment option on lines of ELSS (tax breaks) for ETF investing in CPSE’s. This should encourage long term investments in CPSE’s and also provide an alternate investment option to retail investor which is tax efficient”.

Union Budget 2019 Reactions: Gaurav Garg, Head of Research at CapitalVia Global Research

"A very nominal excise duty has been imposed on tobacco products in this budget. The increase in this tax was expected to be much higher. Hence, the relatively low increase in taxes on sin goods will help companies like ITC,."

Union Budget 2019 Reactions: Abheek Barua, Chief Economist, HDFC Bank

"The government has tried to strike a balance between fiscal consolidation and supporting growth. With a hike in excise duties, increasing the target for divestments and for the dividend receipts, the government has made sure that overall revenue collections do not suffer. This was especially important at a time when the traction in GST and personal income tax collections remained muted. Now, with the downward revision in the collection target of these two categories, the overall revenue assumptions looks much more credible and pragmatic,".

Markets Volatile

Sensex down by 400 points after Union Budget 2019, the NSE Nifty declined by 134.30 points to 11,812.50.

Union Budget 2019 Reactions: Aditya Narain, Head of Research at Edelweiss Securities

“Initiatives for NBFCs are good and much-needed intervention. The efficacy of the implementation of these measures now needs to be seen. Bank recap is essentially good for the system but merely getting additional capital won't make investors interested in banks. It depends a lot on how the recapitalisation is used for growth.”

Union Budget 2019 Reactions: Rajnath Singh, Union Minister

"The Union Budget 2019-20 is not only farmer and industry friendly it also addresses the concerns of youth, women, middle class, poor, and the common man. This Budget would expedite India’s forward march towards progress and prosperity." He further added, "Inspired by the mantra of ‘Sabka Saath, Sabka Vikas and Sabka Vishwas’ the Union Budget 2019-20 has not only outlined the vision for ‘New India’ but it is also focused on bringing a qualitative change in people’s lives."

Union Budget 2019 Reactions: Narendra Modi, Prime Minister

“The budget was citizen friendly and development friendly. "There is ease of living for people. Country is full of hope,".

Union Budget 2019 Reactions: Amar Ambani, YES Securities

“Body blow to HNIs by levying high surcharge on the rich; Effective tax rate on biggest bracket goes to 42%”. He further added “High disinvestment target of Rs 1,05,000 crores set, along expected lines. It's a stiff target and the government will need to act fast to achieve the same.”

Union Budget 2019 Reactions: Lav Kumar, Head- Product & Business Development at LIC Mutual Fund

"The budget focuses on the much needed infrastructure spending & up gradation & the funding for the same is proposed to be done through additional excise duty on petrol & diesel. Given the downward trend in international crude prices, this may not impact consumers much. This budget also increases ease of doing business by giving relief to start ups & angel investors. The budget intends to push capital deployment by companies having turnover upto 400 crores by giving relief in corporate tax. The budget intends to bring more FDI in various sectors by easing the FDI limits. The budget also proposes to raise external borrowing which will help money market in the country,".

Indices recover from day's low

Sensex down by over 250 points at 39,611.69; Nifty nears 11,850 points.

Union Budget 2019 Reactions: Abhishek Jain, Tax Partner, Ernst and Young

"The budget from an indirect tax perspective was mostly aligned to the Government's Make in India, cleaner India and ease of business agenda. Proposal of Legacy Dispute Resolution Scheme was much sought for by industry players as most of them wanted to settle litigations of the past after stepping into the new tax era.  Also, rate rationalizations for strategic goods like defence equipment, etc are welcome for the nation as a whole."

Union Budget 2019 Reactions: Kiran Mazumdar Shaw, Chairperson and Managing Director of Biocon

“I give full marks to @nsitharaman for presenting a very holistic, aspirational n visionary budget. Full marks for an economic strategy for improving social indicators n driving a strong rural economy. But I felt we lost the opportunity to revive private sector investment cycle.”

Union Budget 2019 Reactions : Kunal Wadhwa, Partner – Indirect Taxes, PwC

"GST amongst key structural reforms in the last 5 years to bring India to trillion economy. Clearly GST has included various businesses under the formal economy and would continue to support the country's economy to grow and reach the trillion target for the economy." He also added "Legacy dispute resolution scheme under indirect tax is a big move to clear the pending backlog of indirect tax disputes under the central laws covering central excise duty and service tax giving immediate revenue to the government."

Union Budget 2019 Reactions: Arun Jaitley, former FM of India

The former Union Finance Minister – Arun Jaitley stated that “The budget besides being a policy document for boosting growth, serves the larger interest of all sectors of the Economy.”

Union Budget 2019 Reactions: Swaminathan Aiyar, Economist

"At best, it was an incremental budget. No bold steps. No visionary things. Maybe, I should call it a supplementary budget." He added "Even the rescue package for NBFCs was a big positive, as was the removal of angel tax, which was long overdue,"

Nifty dives 130 points

The Nifty has dived 130 points and the Sensex is down 414 points, as markets are not enthused by the Budget.

An all inclusive budget

Most analysts see the Union Budget has pretty decent. It seems to be an all inclusive budget.

Markets sink as Budget speech ends

The markets have fallen substantially, even as the Budget speech ends. The Sensex has fallen 290 points, while the Nifty dropped 92 points.

No change in income tax

There is no change in income tax, but there would be a surcharge in income above Rs 2 crores.

TDS on cash withdrawals

A 2% TDS on cash withdrawals of Rs 1 crores during the year. This is done to discourage cash transactions.

Pre filled IT returns

Pre filled IT returns with capital gains, interest on FDs, so as to reduce time spent on filing returns.

Further tax benefits on home loans

Additional Rs 1.50 lakh deduction for interest on home loans taken up to 31 March 2020.

Tax benefits for electrical vehicles

Tax breaks allowed for buying electrical vehicles. Rs 1.5 lakh deduction in interest allowed on these vehicles.

Corporate tax reduced

All companies with annual turnover of Rs 400 crores and less will see reduced corporate tax.

Direct tax revenues

Direct tax revenues have increased. It is now growing at double digits. Tax proposal to stimulate growth.

Markets trade flat

The Sensex has recovered and is now trading with modest gains of 1 point. The Nifty is down 6 points.

Strategic sale of PSUs

The government will look at strategic sale of PSUs and their consolidation: FM

NBFCs

"For high rated pooled assets of NBFCs (Non Banking Financial Company) one time 6-month credit guarantee for public sector banks": Nirmala Sitharaman

Markets recover

The markets have recovered following some recommendations for NBFCs and bank recapitalization. The Sensex has recovered and is now only down only 44 points.

Banking sector

Banking NPAs reduced by Rs 1 lakh crores last year. Provision coverage ratio at the highest: Sithamaran Rs 70,000 crores for bank capitalization.

NRI benefits

Aadhar cards for NRIs with Indian passports, even if not in India for 180 days.

Women benefits

The Women SHG interest subvention to be extended.

Labour Laws

"Propose to streamline multiple labour laws into four labour codes": Nirmala Sitharaman

Education

"India has a potential to become a hub of higher education. I propose to start a program ‘Study in India’, this would focus on bringing foreign students to India in our higher educational systems”: Finance Minister Nirmala Sitharaman

Education

We have 3 Indian institutions, two IITs and IISc Bengaluru in top 200 world university ranking, from nil five years ago, say FM.

80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries : FM

Water benefit for farmers

The FM has proposed zero budget farming to double the income of farmers. 'Har Ghar Jal' to all rural household by 2024 under Jal Jeevan Mission, says FM

Fisheries

Robust fisheries management framework to be set up under Pradhan Mantri Matsya Sambada Yojana to address critical gaps in value chain: FM

Comprehensive restructuring of National Highways Programme to be done, to ensure creation of National Highways Grid of desirable capacity.

Sensex drops 160 points

The Sensex has dropped 160 points and is at the lowest level for the day. The Nifty has dropped as much as 62 points in trade.

NRI benefits

To provide NRIs seamless to Indian equities, NRI portfolio investment route to be merged with foreign portfolio investment route: FM

Annual Global Investors' Meet to be organized in India, using NIIF as the anchor to get key sets of global players to come and invest in India: FM

1.95 crore houses proposed to be provided with toilets

1.95 crore houses proposed to be provided with toilets, electrictiy and gas DBT platform has reduced completion of houses from 314 days FY16 to 114 days in FY18

Interoperability of RBI depositories and SEBI depositories necessary for seamlesss transfer of treasury bills; govt. will take necessary measures in this regard in consultation with RBI and SEBI: FM

Long term bonds

Credit Guarantee Enhancement Corporation will be set up in 2019-20, action plan to deepen markets for long-term bonds with specific focus on infra sector to be put in place : FM

Long term bonds

Credit Guarantee Enhancement Corporation will be set up in 2019-20, action plan to deepen markets for long-term bonds with specific focus on infra sector to be put in place : FM

Streamlining KYC norms for FPIs

Finance Minister Nirmala Sitharaman says to streamline KYC norms for foreign portfolio investors.

Social Stock Exchange

Social Stock Exchange proposed for listing social enterprises and voluntary organisations to enable them to raise funding

Pension benefit for shop owners

Pension benefits will be offered to 3 crore shopowners with annual turnover of less than Rs 1.5 crore under new scheme called Pradhan Mantri Karam Yogi Man Dhan Scheme.

Benefits for MSME

Public infra and affordable housing to be taken up MSME focus - loan of upto Rs 1 crore in 29 minutes - 350 crore has been allocated in FY20 for all GST registered MSMEs on fresh or incremental loans.

Encouragement for electric vehicles

FAME II scheme aims to encourage faster adoption of electric vehicles by right incentives and charging infra: FM

Bharat Mala project

"The ambitious programme of Bharatmala will help develop roads and highways, while Sagarmala will enhance port connectivity": FM

Aviation Financing

As the world's third largest domestic aviation market, the time is right for India to enter into aircraft financing and leasing activities. This is critical to the development of self-reliant aviation industry: Finance Minister

Need to be trillion

India will become trillion economy this year; now 6th largest in the world. Need to continue to take many structural reforms to achieve trillion economic goal: Finance Minister

We shall further simplify procedures, incentivise performance, reduce red-tape and make the best use of technology: Finance Minister

Last mile delivery stood out

Last mile delivery stood out, citizens in every nook and corner of the country felt the difference; our objective was and continues to be Mazbooth Desh Ke Liye Mazbooth Nagarik: FM

Amount spent on food security approximately doubled

Amount spent on food security approximately doubled in 2014-19, as compared to preceding five years" FM

The people of India have validated their two goals for our country's future: national security and economic growth - :FM

Speech begins

Speech begins with a reference to 'new India' and the election result. Taking it as a validation of the performance of the government.

FM rises to present Budget

Markets trade flat ahead of Union Budget

The Sensex and the Nifty are absolutely flat ahead of the Union Budget. The Sensex is up 22 points, while the Nifty is up 2 points. The broader markets too are trading absolutely flat in trade.

No fiscal room to increase expenditure

The government may not have too much of a fiscal room to increase expenditure. This year in particular it would be tough, with the economy slowing down and hence tax revenues likely to drop.

Land reforms must be on the agenda

Land reforms are a must, as this has impeded rapid growth. The government must seriously announce some reforms in this direction. While this is not something that is often written about, the hopes are that the government will seriously consider something along these lines.

Analysts expect fiscal deficit at 3.4 for 2019-20

Analysts are expecting a fiscal deficit number near 3.4 per cent for 2019-20. This number will be closely watched by analysts and economists alike.

Markets give-up gains

The Nifty has given given-up gains and is now up only 6 points. Yes Bank has crashed almost 6 per cent in trade. The stock is now trading at Rs 90.95, which is probably a 5-year low.

FM calls on President Ramnath Kovind

The Finance Minister has called on President Ramnath Kovind, before presenting the Union Budget. The recommendations are slated for 11 am. Hopes are the Union Budget will bring some relief to farmers and boost rural income.

Markets steady ahead of budget: Yes Bank drops 3%

Markets were relatively steady ahead of the Union Budget. The Sensex rallied 100 points in trade, while the Nifty was up 23 points. Yes Bank continued to drop, with the bank's shares falling by 3 per cent. Other losers in trade were ONGC, NTPC and Bharat Petroleum.

Government needs to stimulate the economy

The government needs to stimulate the economy through a slew of measures. It cannot control expenditure at this stage. Even if the fiscal deficit is slightly above limits, it should not be a major worry for the country.

Budget in red folder

Nirmala Sitharaman has broken the Budget tradition and has carried the Budget papers in a red folder. The usual practice was to carry the same in a briefcase. In a few hours from now, we would no what were the Budgetary recommendations in that folder.

Sensex opens higher, crosses 40,000 Points Mark

Benchmark indices have opened higher, ahead of the Union Budget with the Sensex crossing the 40,000 points mark at 40,004 points. The indices are expected to remain extremely volatile through the course of the day.

Divestment target maybe hiked

Divestment target maybe hiked to Rs 90,000 crores. This would be extremely important for meeting the fiscal requirements and propel growth. How and in what for it would come remains to be seen.

Increase in 80C limit possible

There are reports that the government could increase the 80C limit. If it does it could be a step in the right direction, as it could propel revenues.

Asian markets higher

Most Asian markets are trading higher, led by the Japanese Nikkei. The Shanghai Composite is lower though. The rupee is expected to remain flattish ahead of the Budget announcements.

No major sops for individuals likely

It is likely that we may not see major sops for individuals. SEC80C maybe hiked, though tax slabs are unlikely to be changed. Looking at the fiscal deficit numbers, do not expect major benefits.

SGX Nifty indicates flat start

The SGX Nifty indicates that the markets are headed for a flat start