Budget 2012-13: Sensex up 100 pts; ITC spikes 5%, auto stocks rebound

The BSE Sensex got back into consolidation phase as the Finance Minister Pranab Mukherjee ended his speech on Union Budget 2012-13. The market saw extreme volatility during the speech. Experts were mixed in their opinions over this Budget; some feel it was non-event for the market while some say, it is a realistic Budget.

Vallabh Bhansali of Enam said it was a credible budget given the current political conditions. "Fiscal deficit of 5.1% was expected. We could have seen a lot more on fiscal consolidation." He insisted that Budget will see more acceptance going forward.
According to Uday Kotak of Kotak Mahindra Bank, directionally the budget focused on importance on capital markets. FM slashed securities transaction tax by 20% to 0.1% on delivery transactions.
The 30-share BSE Sensex was up 129 points at 17,804.99 and the 50-share NSE Nifty rose 41 points to 5,421.90.
The most supportive stock for the market today was ITC, which shot up more than 5% - top gainer among largecaps. FM raised excise duty on cigarettes by 10% and advaloram duty on some cigarettes, which was on expected lines. But the hike in excise duty on beedi and other tobacco products was quite positive for the company.
For aam adami, income upto Rs 2 lakh is expected from tax. FM says, "Income from Rs 2-5 lakh - tax will be 10%; income from Rs 5-10 lakh - tax will be 20%; and above Rs 10 lakh - tax of 30%."
Even auto stocks rebounded as the FM did not mention of excise duty on diesel cars. However, Pranab hiked standard excise duty rate from 10% to 12%, which was on expected lines. Even he raised duty on large cars from 22% to 27%.
M&M shot up 4.75% while Tata Motors was up 2% and Maruti Suzuki gained 3.5%. At 12:51 hours IST: Nifty claws back above 5400; ITC rises 4%, Manappuram falls
The BSE Sensex remained extremely choppy in trade as the Finance Minister was moving towards the end of his Union Budget Speech further. He has raised excise duty on cigarettes by 10% and advaloram duty on some cigarettes. However, ITC gained 4% as the duty hike may be lower than expected by the company. He also hiked excise duty on beedi and other tobacco products, which is positive for ITC.
Manappuram Finance was down 4% after the FM doubled custom duty on refined gold.
The BSE benchmark rose 16 points to 17,691.92 and the NSE benchmark was up 7 points at 5,387.25. At 12:36 hours IST: Sensex falls 90 pts; FM hikes excise duty to 12% from 10%
The BSE Sensex shaved off all its gains after Finance Minister Pranab Mukherjee hiked standard excise duty rate from 10% to 12%. Even he raised duty on large cars from 22% to 24%.
Service tax increased to 12% from 10%, which will yield Rs 18,660 crore for the government, FM says.
The BSE benchmark lost 90 points to 17,585.63 and the NSE benchmark fell 22 points to 5,358.05.
_PAGEBREAK_ At 12:25 hours IST: Choppy Sensex trades higher; FM cuts STT by 20% to 0.1%
The BSE Sensex was extremely volatile during speech by Finance Minister Pranab Mukherjee. He said the government has reduced Securities Transaction Tax (STT) by 20% on delivery transactions to 0.1%.
He set fiscal deficit target 5.1% of GDP for FY13. He, during his Union Budget Speech, said income upto Rs 2 lakh exempted from tax. "Income from Rs 2-5 lakh - tax will be 10%; income from Rs 5-10 lakh - tax will be 20%; and above Rs 10 lakh - tax of 30%."
The Sensex was up 38 points at 17,714.11 and the NSE Nifty rose 17 points to 5,397.85.
Even the market breadth improved further; about 750 shares advanced while 696 shares declined on the National Stock Exchange. At 12:13 hours IST: Sensex turns flat; ICICI Bank, HDFC Bank, BHEL rise
The BSE Sensex was trying to stay in a positive terrain amid choppy trade, though it saw major profit booking due to fall in Reliance Industries, L&T, ONGC and Infosys. However, banks & financials and select metals stocks were on buyers' radar.
To boost infrastructure sector, Finance Minister increased limit for tax free bonds doubled to Rs 60,000 crore, which is positive for IDFC, REC and PFC.
SKS Microfinance gained 3% as FM said the government would introduce new law for microfinance companies. At 12 hours IST: Sensex erases gains during FM speech; Reliance falls 1.5%
The BSE Sensex shed some more gains during Union Budget Speech. It gained 28 points at 17,703 and the NSE Nifty rose 15 points to 5,395.
Finance Minister Pranab Mukherjee said Coal India has been advised to sign fuel supply agreement with power plants. 
The government has allowed IRFC and NHAI to raise Rs 10,000 crore each by issuing tax free bonds in FY13.
Current account deficit, he says, is likely to be at 3.6% for FY12.
Private sector lenders ICICI Bank and HDFC Bank rose 1.6% each while rival SBI gained 1.3%.
However, Reliance Industries, India's most valued stock fell 1.5%. State-run ONGC too was down 1%. At 11:47 hours IST: Sensex off day's high; HDIL, Kingfisher move up
The BSE Sensex erased some gains as the Finance Minister Pranab Mukherjee proceeds further with his Union Budget 2012-13 speech. He says FDI in aviation is under consideration, which is positive for Kingfisher Airlines (gained 2%).
He emphasised more on allowing ECB for low cost affordable housing projects, which is positive for Housing Development and Infrastructure (rose 2%).
The 30-share BSE Sensex rose 82 points to 17,758.09 and the 50-share NSE Nifty gained 33 points at 5,413.55.
Advancing shares outnumbered declining by 945 to 487 on the National Stock Exchange. At 11:35 hours IST: Sensex up 189 pts; IVRCL, HCC gain 4%
The BSE Sensex rallied 189 points to 17,865 as the Finance Minister Pranab Mukherjee proceeded further with his Union Budget 2012-13. He proposes Rs 16880 crore for recapitalisation of PSU banks in FY13. SBI and PNB gained 2% each.
FM expects infrastructure Investment in the 12th Plan to be Rs 50 lakh crore, which will be big boost for infrastructure sector. IVRCL, HCC, Lanco Infratech and NCC rallied 2-4%. At 11:23 hours IST: Sensex rises 140 pts; FM targets 7.6% GDP growth in FY13
The BSE Sensex gained 140 points during Union Budget speech by the Finance Minister Pranab Mukherjee. FM targets GDP growth of 7.35-7.85% for FY13, which was expected lines. Experts had expected at 7.5-7.75%.
He said, "We will fully fund Food Subsidy act from FY13. We will bring subsidies to 1.7% of GDP in next 3 years."
The government has set Rs 30,000 crore divestment target for FY13, which is lesser than earlier targets of Rs 40,000 crore in FY12 (the government could not met this target as it raised over Rs 14000 crore so far).
The 30-share BSE Sensex rose 143 points to 17,818.37 and the 50-share NSE Nifty gained 48 points at 5,428.55. At 11:14 hours IST: Sensex extends gains as FM begins Budget speech
The BSE Sensex extended gains as the Union Budget speech started by the Finance Minister Pranab Mukherjee. Banks, capital goods, technology and metal stocks were on buyers' radar while Reliance Industries and auto (four-wheeler) stocks were under pressure.
The BSE Sensex rose 135 points to 17,811.05 and the NSE Nifty gained 45 points at 5,425.45.
The market has been rallying on the back of strong inflow of foreign money, but at the same time domestic institutional investors were net sellers in 2012 due to lack of fundamental reasons.
Investors are looking for some strong fundamental reasons to stop selling further, feels Samir Arora, Fund Manager, Helios Capital.
He said,