Budget 2011; Sensex maintains gains

Finance Minister Pranab Mukherjee' Union Budget 2011-12 was supporting the Indian equity benchmarks. The Nifty gained 62 points at 5,365 and the Sensex rallied 216 points to 17,917.

Export duty is set at 20% for iron ore (negative for NMDC & Sesa Goa) and basic customs duty on pet coke and gypsum will be reduced to 2.5% from 5% (Positive for cements), FM said.

"Stainless steel scrap exempted from basic customs duty and cut customs duty on yarn to 5% from 7.5%. export duty on iron ore pellets withdrawn," he said.

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Sensex choppy; MAT rate raised from 18% to 18.5% in budget

The 30-share BSE Sensex regained further amid extreme volatility after announcement of direct tax by Finance Minister Pranab Mukherjee in his Union Budget 2011-12 speech.

FM said exemption limit for general tax payers raised to Rs 1.8 lakh from Rs 1.6 lakh and qualifying age for senior citizens reduced to 60 vs 65. For the companies, the government has reduced current surcharge of 7.5% on domestic companies to 5% and proposed to levy MAT on developers of SEZ