Mkts end weak: Short term cap gain tax hiked to 15%

The markets opened on weak note on the budget day and plunged in deep red once the Finance Minister started presenting the budget. Sensex and Nifty, however witnessed significant recovery in the last one hour of trade on the back of good performance of FMCG, bank, pharma and auto stocks. Finally, Sensex and Nifty ended weak. 

It was bad day for the metal, realty. capital goods and oil & gas counters which traded weak through the day. Broader markets were also weak leading to negative breadth. On the volume front, it was truncated.  

Sensex ended down 245.76 points or 1.38% at 17578.72, and the Nifty closed down 61.60 points or 1.17% at 5223.50. On BSE, about 1221 shares advanced, 1750 shares declined, and 73 shares were unchanged. BSE midcap and smallcap ended down 0.41% each at 7680.39 and 9628.13 respectively.      

FM confidently assured that India would maintain its GDP growth at 8.8%. He added that the keeping inflation under check has been the cornerstone of the Government policy. The FM pointed out that the country has seen 8% GDP growth in 12 successive quarters.

The markets also reacted negatively as the FM has proposed to hike the short term capital gains tax from 10% to 15%. However, the brokers are expected to benefit from the proposal of STT being allowed as deductible expenditure.

Auto stocks surged today and the BSE auto index ended with 1.2% gain on the back of deduction in the excise duty from 16% to 12%. Major gainers in this space were Maruti Suzuki, Bajaj Auto and Ashok Leyland.     

BSE bankex which recoverd sharply in late trade ended up 0.4% at 10113.73. major gainers in this sector were SBI, PNB, Allahabad Bank and Federal Bank.

FMCG stocks were strong today, BSE FMCG index ended up 0.91% at 2274.39. Some of the major gainers were HUL, Godrej Consumer and GlaxoSmith Con.

Capital good counters were weak and the BSE index closed down nearly 3% at 16119.52. Major losers in this space were Suzlon, Punj Lloyd and Siemens.

IT sector ended with sharp cut of 2.65% at 3862.45. Major losers were HCl Tech, Financial Tech and Infosys. In the metal space, BSE index ended down 1.37% at 16739.52. Major losers in this space were Shree Precoated, Jindal Stainless, Nalco and Tata Steel. 

BSE oil & gas index ended lower at 1.19% at 11032.16. Some of the major losers were BPCL, HPCL, Reliance and RNRL. In the power space, the losers were Suzlon, Punj Lloyd, Crompton Greaves. The index ended down 2.06% at 3670.94. BSE realty index was down 2.72% at 9565.67. Leading losers were Unitech, Akruti City and DLF.

3:00 pm: Mkts off day's low; bank, auto FMCG stocks led recovery

The markets have recovered more on the back of some more buying coming in the banking, pharma, FMCG and auto stocks in last half an hour. Bankex has witnessed sharp recovery and has jumped in green pasture. However, realty, metal, oil & gas and capital goods stocks are still under deep pressure.  

At 15.00 hrs IST, the Sensex is down 181.11 points or 1.02% at 17643.37, and the Nifty down 42.35 points or 0.80% at 5242.75. About 1141 shares have advanced, 1823 shares declined, and 80 shares are unchanged.

Banking stocks which had plunged after the budgetary prosposal of waiving Rs 60,000 crore of loans to farmers, recovered smartly on the back of clafication that the union govt will reimburse the losses. Bankex was trading with a gain of 0.2%. Some significant gainers in this space are PNB, Allhabad Bank, SBI and Federal Bank.  

FMCG stocks have been buzzing today. Major gainers are HUL, GlaxoSmith Con, Proctor & Gamble and Godrej Consumer.

2:20 pm: Mkt sees slight recovery; FMCG, auto stocks up

The markets are on recovery track as Sensex and Nifty has pulled back significantly from its day's low. However, they are still trading deep in red. Some buying was seen in auto and FMCG space, as a result these indices are holding in green. Rest of the BSE key indices are still reeling under pressure led by  realty, metal, oil & gas, IT and banking. 

At 14.20 hrs IST, the Sensex is down 362.80 points or 2.04% at 17461.68, and the Nifty down 141.10 points or 2.67% at 5144. About 978 shares have advanced, 1987 shares declined, and 79 shares are unchanged.

In the realty space, Unitech Anant Raj Industries, Akruti City and India Bulls are trading with over 3% losses each.

Oil & gas index has also plunged severely. BPCL, HPCL, Reliance, RNRL and ONGC are some of the worst hit counters,

JSW Steel, Shree Precoated, Tata Steel, Jindal Stainless are the leading losers in the metal sector.

At 1:40 pm: Mkts plunge further; metal, energy, realty stocks worst hit

The markets have weakened further and have lost further ground. All the benchmark BSE indices are trading in red led by realty, metal, oil & gas, IT and banking. BSE midcap and smallcap indices are also down over 1.5% each. Market breadth has worsened further with advance decline ratio of 1:4 and on the volume front also, it has been abysmal so far today.  

At 13.40 hrs IST, the Sensex is down 516.49 points or 2.90% at 17307.99, and the Nifty down 154.25 points or 2.92% at 5130.85. About 941 shares have advanced, 2023 shares declined, and 80 shares are unchanged.

FM has proposed to hike the short term capital gains from 10% to 15%. However, the brokers are expected to benefit from the proposal od STT being allowed as deductible expenditure.

Corporate taxes has been kept unchanged in the budget, however the personal income slab has been changed giving relief to the tax assesse. Now there will be no tax up to the income of Rs 1.5 lakh. In case of women, its been increased to 1.8 lakh and in case of senior citizen, it will be Rs 2.25 lakh.

Some key points from budget:

Central Sales Tax cut to 2% from 3%
Banking cash transaction tax withdrawn
Securities Transaction Tax (STT) rates unchanged
DDT unchanged at 15%
Govt to introduce commodities transaction tax, like STT
Levy of STT only on option premiums
Short-term cap gains hiked to 15%
Production of seeds added to VAT list
5-year tax holiday for setting up hospitals in non-urban cities
10% income tax for income in the range of Rs 1.5-3 lakh
30% Income Tax For Income above Rs 5 Lakh
No change in corporate tax
Personal income tax exemption slab for women at Rs 1.8 lakh
Personal income tax exemption slab at Rs 1.5 lakh

1:00 pm: Mkts lose further ground: Short term cap gains tax hiked to 15%

The markets have given up some more points as the FM has proposed to hike the short term capital gains from 10% to 15%. However, the brokers are expected to benefit from the proposal od STT being allowed as deductible expenditure.

At 13.00 hrs IST, the Sensex is down 382.11 points or 2.14% at 17442.37, and the Nifty down 112.15 points or 2.12% at 5172.95. About 1162 shares have advanced, 1784 shares declined, and 98 shares are unchanged.

Corporate taxes has been kept unchanged in the budget, however the personal income slab has been changed giving relief to the tax assesse. Now there will be no tax up to the income of Rs 1.5 lakh. In case of women, its been increased to 1.8 lakh and in case of senior citizen, it will be Rs 2.25 lakh.

Overall, it is a balanced budget, says experts. Some of the experts are also of the opinion that it is a populist budget and has been presented with keeping coming union budget in mind. PSU banks are expected to be benefited as Rs 60,000 cr of waiver would be reimbursed by the union government leading to decrease in NPA's of banks. Consequently the topline may go up. However, bankex was trading down with over 2% cut. Leading losers in the banking space were SBI, PNB, Bank of Baroda and Union Bank and Bank of India.

Except auto and FMCG index, all other benchmark BSE indices are still trading in red. Auto counters are buzzing as the excise duty has been cut from 16% to 12%. Maruti Suzuki, Bajaj Auto and M&M  were the major gainers.

Lower excise rates are expected to boost the manufacturing  sector and also reduce the inflation. It will also benefit the pharma, auto space. FM has also provided tax benefit for the hospitality and tourism sectors.

Top gainers on the Sensex are Maruti Suzuki at Rs 851.20 up 1.95%, Mah and Mah at Rs 690.95 up 1.59% and ITC at Rs 204 up 0.99%.

Top losers on the Sensex are Ambuja Cements at Rs 116.10 down 4.13%, Wipro at Rs 429.80 down 3.73% and Reliance at Rs 2,442 down 3.73%.

Nagarjuna fertilizers, Reliance, SBI, SAIL are some of the most active counters in todays trade.

Some more key takeaways from Union Budget 2008-09

• General cenvat rate reduced from 16 to 14% Kelkar committeee
• DDT Rationalisation To Benefit Investment Holding Cos
• New Hospitals set up eligible for tax holiday under section 80I(B)
• Reduction Of CENVAT +ve Impact On Manufacturing Industries
• Non-extension of 10 A for STPI to increase effective tax rate@18% FY 2010
• STT Allowed As Deductible Expenditure; Benefit Stock Brokers
• CST rate reduced as committed to 2%
• STT On Commodity Derivatives; -ve for the sector
• STCG increased from 10% to 15%; -ve
• Tax Benefit for Healthcare & Tourism Cos: +ve for Sectors
• Excise Duty On Clinker Upped to Rs 450/tonne; -ve for Ultratech, Kesoram
• DDT Rationalisation To Benefit Investment Holding Cos
• Seed co's to get 150% deduction on R&D expenses; + ve Monsanto, Advanta
• Weighted Deduction for outsourced R&D; +ve for Pharma Cos
• New Service Tax Levy; -ve impact on Insurance(ULIPs), IT Sector
• Excise Duty on Buses to 12%; +ve For Ashok Ley, Tata Motors
• Cut in Excise Duty in 3 Wheelers to 12%; + ve Bajaj, M&M
• Excise Duty Cut Tea Industry +ve Impact
• Small cars to cost less by 10-15K
• Reduction in Excise Duties; +ve Impact on Auto, Paper Cos
• Decrease In Steel Melting Scrap to NIL
• Customs Duty on Project Imports Cut; + Ve Engg, Power Co
• 10% Higher Defence Allocation; +ve BEL, BEML, Astra Micro, Zen, M&M
• Corporate Bond Mkt To Reduce Interest Costs; +ve For Infra Cos
• Smart Cards for PDS, National Electronic Trading Projects;TCS,HCL in Focus
• NELP VII focus; +ve For E&P Cos and FDI in Oil & Gas Sector

12.42 pm: Mkt slip further: Short term cap gains tax hiked to 15%

The markets have slipped further on short term capital gains tax hike from 10% to 15%. Frontline FMCG stocks HUL and ITC were up. IT software training and paper stocks are up.  There will be a waiver of Rs 50,000 cr; Bank of Maharashtra says it will not be negative for PSU Banks if government reimburses. Bankex is down over 2.5%. FM has proposed no change in peak custom duty, custom duty on steel scrapped from 5% to 0%.

Excise on small cares cut from 16% to 12%. M&M up 3%; Bajaj Auto up 3.7%.

Excise duty on small cars reduced to 12 per cent from 16 per cent and hybrid cars to 14 per cent

At 12.42 hrs IST, the Sensex is down 435 points at 17389, and the Nifty down 129 points 5155.

About 1499 shares have advanced, 1444 shares declined, and 101 shares are unchanged.

Banking stocks are down. Most of the BSE sector indices in red. Fertiliser and textile stocks are running and are trading in green. Among the frontliners  FMCG and realty stocks are in green.

IDBI, Uco, Vijaya Bank, SBI, PNB, Bank of India, Andhra Bank were among the losers on the indices.

Navneet, KSB Pumps, Godrej were among the gainers.

Exploration licensing area from 44% to 80%;+ve growth for E&P cos.

In the Budget announcement stocks to be positive impacted: Increased Allocation to Bharat Nirman Program;+ ve For Infra Sector. Increase In Education Spending;+ ve For Paper Prod, Todays Writing. Increase In Education Spending;+ ve For Malu Paper,Rama Newsprint. Increased Focus On Health Sector; +ve For Pharma Cos. Educational sector: Employment pool for KPO's will benefit IT sector.

12.39: The markets are trading lower as the FM is announcing Budget 2008. Frontline FMCG stocks HUL and ITC were up. IT software training and paper stocks are up.  There will be a waiver of Rs 50,000 cr; Bank of Maharashtra says it will not be negative for PSU Banks if government reimburses. Bankex is down over 2.5%. FM has proposed no change in peak custom duty, custom duty on steel scrapped from 5% to 0%.

Excise on small cares cut from 16% to 12%. M&M up 3%; Bajaj Auto up 3.7%.

Excise duty on small cars reduced to 12 per cent from 16 per cent and hybrid cars to 14 per cent

At 12.39 hrs IST, the Sensex is down 200.41 points or 1.12% at 17624.07, and the Nifty down 46.45 points or 0.88% at 5238.65.

About 1423 shares have advanced, 1516 shares declined, and 105 shares are unchanged.

Banking stocks are down. Most of the BSE sector indices in red. Fertiliser and textile stocks are running and are trading in green. Among the frontliners  FMCG and realty stocks are in green.

IDBI, Uco, Vijaya Bank, SBI, PNB, Bank of India, Andhra Bank were among the losers on the indices.

Navneet, KSB Pumps, Godrej were among the gainers.

Exploration licensing area from 44% to 80%;+ve growth for E&P cos.

In the Budget announcement stocks to be positive impacted: Increased Allocation to Bharat Nirman Program;+ ve For Infra Sector. Increase In Education Spending;+ ve For Paper Prod, Todays Writing. Increase In Education Spending;+ ve For Malu Paper,Rama Newsprint. Increased Focus On Health Sector; +ve For Pharma Cos. Educational sector: Employment pool for KPO's will benefit IT sector.

Among the top gainers were; KSB Pumps up over 8%; Everonn Systems up over 3%, NIIT up 4.5%. Aptech up 3.5%; Panacea up 13%.

12:00 pm: The markets are still in red; PSU bank stocks have tumbled; For marginal farmers there will be a complete waiver of all loans. There will be a waiver of Rs 50,000 cr; Bank of Maharashtra says it will not be negative for PSU Banks if government reimburses. Bankex is down over 2.5%.

Banking stocks are down. Most of the BSE sector indices in red. Fertiliser and textile stocks are running and are trading in green. Among the frontliners  FMCG and realty stocks are in green.

IDBI, Uco, Vijaya Bank, SBI, PNB, Bank of India, Andhra Bank were among the losers on the indices.

At 12:00 hrs IST, the Sensex is down 216.63 points or 1.22% at 17607.85, and the Nifty down 89.70 points or 1.70% at 5195.40.

About 1476 shares have advanced, 1453 shares declined, and 114 shares are unchanged.

In the Budget announcement stocks to be positive impacted: Increased Allocation to Bharat Nirman Program;+ ve For Infra Sector. Increase In Education Spending;+ ve For Paper Prod, Todays Writing. Increase In Education Spending;+ ve For Malu Paper,Rama Newsprint. Increased Focus On Health Sector; +ve For Pharma Cos. Educational sector: Employment pool for KPO's will benefit IT sector.

Among the top gainers were; KSB Pumps up over 8%; Everonn Systems up over 3%, NIIT up 4.5%. Aptech up 3.5%; Panacea up 13%, Jain Irrigation up 2%.

Higher Outlay for Education; positive for Educomp, Everonn, Aptech, NIIT; Educomp up 1%; NIIT up over 4%. Higher Outlay For Polio, HIV Eradication; + ve Panacea Biotech & Cipla.

11:42: The markets is languishing at the lower level with moderate losses as the Union Budget 2008 is being announced. Banking stocks are down. Most of the BSE sector indices in red. Fertiliser and textile stocks are running and are trading in green. Among the frontliners  FMCG and realty stocks are in green.

In the Budget announcement stocks to be positive impacted: Increased Allocation to Bharat Nirman Program;+ ve For Infra Sector. Increase In Education Spending;+ ve For Paper Prod, Todays Writing. Increase In Education Spending;+ ve For Malu Paper,Rama Newsprint. Increased Focus On Health Sector; +ve For Pharma Cos. Educational sector: Employment pool for KPO's will benefit IT sector.

Among the top gainers were; KSB Pumps up over 8%; Everonn Systems up over 3%, NIIT up 4.5%. Aptech up 3.5%; Panacea up 13%, Jain Irrigation up 2%.

At 11.42 hrs IST, the Sensex is down 118.57 points or 0.67% at 17705.91, and the Nifty down 48.85 points or 0.92% at 5236.25. About 1590 shares have advanced, 1342 shares declined, and 111 shares are unchanged.

Higher Outlay for Education; positive for Educomp, Everonn, Aptech, NIIT; Educomp up 1%; NIIT up over 4%. Higher Outlay For Polio, HIV Eradication; + ve Panacea Biotech & Cipla.

Bank stocks are down; bankex is down over 2.5%

11:32 am: The markets is languishing at the lower level with moderate losses as the Union Budget 2008 is being announced. Banking stocks are down. Most of the BSE sector indices in red. Fertiliser and textile stocks are running and are trading in green. Among the frontliners  FMCG and realty stocks are in green. Total turnover so far is Rs 12740 crore

Higher Outlay for Education; positive for Educomp, Everonn, Aptech, NIIT; Educomp up 1%; NIIT up over 4%. Higher Outlay For Polio, HIV Eradication; + ve Panacea Biotech & Cipla.

At 11.22 hrs IST, the Sensex is down 180.62 points or 1.01% at 17643.86, and the Nifty down 58.40 points or 1.10% at 5226.70. About 1584 shares have advanced, 1347 shares declined, and 112 shares are unchanged.

Among the frontliner sstocks HUL, ITC are in green. Kothari, Rana, Dhampur were among the top gainers.BPCL, Krone, Manjushree, Suzlon were among the loser. In the fertiliser space, Nagarjuna, Chambal, Oswal Chem, RCF are trading in green. Realty gainers were Parsvnath, Unitech and Ansal Properties were in green.

11:10 am: The markets have given up some more gains are trading weak. Banking stocks are down. Most of the BSE sector indices in red. Fertiliser and textile stocks are running and are trading in green. Among the frontliners  FMCG and realty stocks are in green. Total turnover so far is Rs 12740 crore

At 11:10 hrs IST, the Sensex is down 110.65 points or 0.62% at 17713.83, and the Nifty down 60.80 points or 1.15% at 5224.30.

About 1634 shares have advanced, 1309 shares declined, and 100 shares are unchanged.

About 1646 shares have advanced, 1304 shares declined, and 93 shares are unchanged.

Among the frontliner stocks HUL, ITC are in green. Kothari, Rana, Dhampur were among the top gainers.BPCL, Krone, Manjushree, Suzlon were among the loser

In the fertiliser space, Nagarjuna, Chambal, Oswal Chem, RCF are trading in green. Realty gainers were Parsvnath, Unitech and Ansal Properties were in green.

Textile stocks like Arvind Mils, Bombay Dyeing, Bang Overseas, S Kumars were among the gainers. Shipping stocks like Shreyas Shipping, Mercator, Varun Shipping abd SCI were trading in green.

10:52 hrs: The markets are trading with moderate losses ahead of the Union Budget announcement. Fronliners are trading weak but the midcaps and smallcaps are seeing selective buying interest. Banking stocks are down. Most of the BSE sector indices in red. Fertiliser and textile stocks are running and are trading in green. Among the frontliners  FMCG and realty stocks. Metal, IT, energy and banking stocks are trading in red. Market breadth is inconclusive. 

At 10.52 hrs IST, the Sensex is down 107.79 points or 0.60% at 17716.69, and the Nifty down 44.25 points or 0.84% at 5240.85. About 1609 shares have advanced, 1333 shares declined, and 100 shares are unchanged.

Bankining stocks are in red; ICICI, Vijaya, SBI, Kotak Mah, Allahabad Bank are trading in negative terrain. Balrampur, Triveni, Sakhti, Rana Sugar were among the top sugar gainers. In the fertiliser space, Nagarjuna, Chambal, Oswal Chem, RCF are trading in green. Realty gainers were Parsvnath, Unitech and Ansal Properties were in green.

Textile stocks like Arvind Mils, Bombay Dyeing, Bang Overseas, S Kumars were among the gainers. Shipping stocks like Shreyas Shipping, Mercator, Varun Shipping abd SCI were trading in green.

Major gainers are BHEL, ITC, Cipla, Tata Communication followed by TCS, NTPC, Reliance, Nagarjuna Fertliser and GMR Infra.Bharti, ICICI, HDFC Siemens, Suzlon followed by Tata Power, ICICI bank, Wipro, Infosys, Satyam, GAIL and NALCO are on the losers list.  

10.27 hrs: The markets are trading weak ahead of the Union Budget announcement. Fronliners are trading weak but the midcaps and smallcaps are seeing selective buying interest. Most of the BSE sector indices in red. Fertiliser and textile stocks are running and are trading in green. Among the frontliners  FMCG and realty stocks. Metal, IT, energy and banking stocks are trading in red. Market breadth is inconclusive.

At 10.27 hrs IST, the Sensex is down 97.45 points or 0.55% at 17727.03, and the Nifty down 35.55 points or 0.67% at 5249.55.

About 1532 shares have advanced, 1397 shares declined, and 113 shares are unchanged.

The cues from the global markets have not been encouraging as the Asian markets are trading in red with deep cut following weak closing of US peers.

Bankining stocks are in red; ICICI, Vijaya, SBI, Kotak Mah, Allahabad Bank are trading in negative terrain.

Balrampur, Triveni, Sakhti, Rana Sugar were among the top sugar gainers.

In the fertiliser space, Nagarjuna, Chambal, Oswal Chem, RCF are trading in green.

Realty gainers were Parsvnath, Unitech and Ansal Properties were in green.

Textile stocks like Arvind Mils, Bombay Dyeing, Bang Overseas, S Kumars were among the gainers. 

Shipping stocks like Shreyas Shipping, Mercator, Varun Shipping abd SCI were trading in green.

Major gainers are BHEL, ITC, Cipla, Tata Communication followed by TCS, NTPC, Reliance, Nagarjuna Fertliser and GMR Infra.

Bharti, ICICI, HDFC Siemens, Suzlon followed by Tata Power, ICICI bank, Wipro, Infosys, Satyam, GAIL and NALCO are on the losers list.  

Markets open weak ahead of Budget 08-09

The markets opened on weak note today ahead of Budget 2008-09. The cues from the global markets have not been encouraging as the Asian markets are trading in red with deep cut following weak closing of US peers.

At 9:56 am, Sensex was down 104 points at 17,719 and Nifty slipped 36 points at 5248.

Metal, IT, energy and banking stocks opened in red today. Major gainers in the opening move are TCS, NTPC, Reliance, Nagarjuna Fertliser and GMR Infra. Tata Power, ICICI bank, Wipro, Infosys, Satyam, GAIl and NALCO are some significant names on the losers list.  

Asian markets were trading weak. Japan's Nikkei dropped 2.54% or 354.19 points at 13,571.32. Hong Kong's Hang Seng fell 1.57% or 384.89 points at 24,206.80. Taiwan's Taiwan Weighted slipped 0.26% or 21.79 points at 8,440.29. Singapore's Straits Times was down 1.66% or 50.90 points at  3,023.25. South Korea's Seoul Composite plunged 1.22% or 21.14 points at 1,715.03.

US markets: The Dow slipped 112.10 points, or 0.88%, to 12,582.18. The Standard & Poor's 500 index fell 12.34 points, or 0.89%, to 1,367.68, and the Nasdaq composite index was down 22.21 points, or 0.94%, to 2,331.57.