With no major spending announced for the economy that is reeling under acute stress, Sensex and Nifty dropped sharply. At the close, Nifty took a hit of over 2.66% and closed down at 11643.80 , while Sensex plunged over 987 points to settle at 39735.53.
The fall came even as the DDT was rolled back i.e. there shall be no tax for dividend in the hands of the companies.Nonetheless those in the higher tax slab than 20% will pay have to shell out a higher tax amount on dividend income.
There was no mention of LTCG andd STT however in today's budget. Also, the minister said that some of the G-securities shall be open for foreign investments. Also, there was proposed an increase in investment limit for FPIs in corporate bonds from 9% to 15%.
There was seen selling pressure all across the board with gains only in the FMCG and IT space. Rest all of the sectors were trading in negative, and infra, banking, auto and metal being the biggest losers in trade today.
Banking stocks continued to trade lower with Nifty Bank down over 1.64%
IDBI Bank also gained a hefty 16% in trade on Budget day after the FM announced that the centre will pare stake in the bank.
Insurance companies were the biggest loser in trade after the Budget 2020 proposed listing of LIC. HDFC Life, SBI Life Insurance were all down as much as 9-10% after the government did not provided any tax exemptions to insurance companies.
ITC was the biggest loser in trade ending close to 7% after excise duty on cigarette and tobacco has been hiked.