India’s BSE climbs, NSE performance worst in three years on budget day; rupee slides further
While 30-share BSE benchmark Sensex climbed 158.18 points or 0.27 per cent to end at 59,708.08, the broader NSE Nifty declined 45.85 points or 0.26 per cent to end at 17,616.30
Indian stock indices experienced some wild swings throughout the day on Wednesday as initial cheer around the budget fizzled out quickly.
While 30-share BSE benchmark Sensex climbed 158.18 points or 0.27 per cent to end at 59,708.08, the broader NSE Nifty declined 45.85 points or 0.26 per cent to end at 17,616.30.
This was the worst budget day performance by Nifty 50 in three years, since the 2.51 per cent fall in 2020.
ITC, Tata Steel, ICICI Bank, Tata Consultancy Services, HDFC, HDFC Bank and Kotak Mahindra Bank were the major gainers in the Sensex, while Bajaj Finserv, State Bank of India, IndusInd Bank and Mahindra & Mahindra were the prominent laggards.
The Indian bond yields market also saw a significant drop after the government announced a gross borrowing at Rs 15 lakh crore for the next financial year.
The benchmark bond yield was at 7.2774 per cent, dropping 11 basis points from the day’s high, while the Indian rupee was largely unchanged against the dollar.
The last full-year budget of the Narendra Modi government ahead of the 2024 general elections focused heavily on increasing capex, while also providing major tax reliefs to the middle class.
Finance Minister Nirmala Sitharaman announced a hike in the capital expenditure by 33 per cent to Rs 10 lakh crore for infrastructure development for 2023-24, which will be at 3.3 per cent of the GDP.
She also tweaked the tax slabs to provide some relief to the middle class whereby they can claim tax rebates on annual income up to Rs 7 lakh in the new tax regime as against Rs 5 lakh.
Gold, silver prices shoot up
Similar fluctuations were witnessed in the prices of gold and silver. After the minister announced a hike in custom duty on articles made from gold and silver bar, price of both the metals increased.
Customs Duties on dore and bars of gold and platinum were increased earlier this fiscal. "I now propose to increase the duties on articles made therefrom to enhance the duty differential. I also propose to increase the import duty on silver dore, bars and articles to align them with that on gold and platinum,” Sitharaman said during her speech.
Gold price jumped Rs 1,090 to Rs 57,942 per 10 grams in the national capital. The yellow metal had closed at Rs 56,852 per 10 grams in the previous trade.
Silver also zoomed Rs 1,947 to Rs 69,897 per kg from Rs 67,950 per kg.
Indian rupee falls 2 paise against US dollar
After initial highs, the Indian rupee settled 2 paise lower at 81.90 (provisional) against the US dollar on Wednesday after the budget.
During the session, the rupee touched an intraday high of 81.68 and a low of 82.03 against the greenback.
Sitharaman in her Budget speech retained the country’s fiscal deficit target of 6.4 per cent in the Revised Estimate for FY23 and cut it to 5.9 per cent for FY24.
(With inputs from agencies)
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