The Indian equity markets have rallied in the early trade tracking positive cues from across the globe. The US markets closed higher overnight supported by some good economic report and easing of crude prices. All the Asian counterparts were trading in the green at this point of time, indicating strong investors' sentiments. Back home, sustained buying in key heavyweights along with broader indices supported NSE's -- Nifty -- and BSE's -- Sensex -- to regain its crucial 5,400 and 18,000 mark, respectively. Auto witnessed the maximum gain in trade followed by banking and fast moving consumer goods with no losers on the BSE sectoral space. The sentiments also remained strong after the finance minister said he expects the economy to grow by nearly 9 percent in the next fiscal year. Moreover, the broader indices too were performing well in the trade. The market breadth on the BSE was positive; there were 1100 shares on the gaining side against 366 shares on the losing side while 45 shares remained unchanged.
The BSE Sensex opened at 17,982.28; about 159 points higher compared to its previous closing of 17,823.40, and has touched a high and a low of 18,077.95 and 17,964.39, respectively. The index is currently trading at 18,076.64, up by 253.24 points or 1.42%. There were 27 stocks advancing against just 3 declines on the index.
The overall market breadth has made a strong start with 77.80% stocks advancing against 24.22% declines. The broader indices were performing well at this point of time; the BSE Mid cap and Small cap indices surged 1.39% and 0.92% respectively.
The top gaining sectoral indices on the BSE were, Auto up by 2.61%, Bankex up by 1.97%, CG up by 1.78%, FMCG up by 1.62% and Realty was up by 1.59%. While there were no losers on the index.
The top gainers on the Sensex were Bajaj Auto up by 4.08%, M&M up by 3.12%, Tata Motors up by 2.62%, Jaiprakash Associates up by 2.52% and Hero Honda was up by 2.39%.
Bharti Airtel down by 0.88%, Wipro down by 0.87% and TCS down by 0.32%, were the only losers on the index.
Meanwhile, The Union Budget for 2011-12 presented in lower house of Indian Parliament on Monday by the Union Finance Minister Pranab Mukherjee appears to be a finely balanced act of widening the tax base while providing some relief to inflation hit individual and corporate tax payers at the same time.
The Budget provided relief to individual tax payers by hiking the tax exempted income level to Rs 1.8 lakh. For senior citizens, the same has been increased to Rs 2.5 lakh. For super senior citizens, a new category for people aging over 80 years, the exemption is even higher at Rs 5 lakh. However, the Budget does away with preferential treatment to women accesses by equating the exemption limit for both the sexes, an example of gender equality that women would probably not like.
There were two major reliefs to the corporate India. First, the 2% balance stimulus that was still prevalent in economy has been left untouched. The government had cut the excise duty by 4% across the board and services tax by 2% following the global slowdown. While excise duty was hiked by 2% last year, both the services tax and general excise duty have been left untouched this year, thus leaving a 2% fiscal stimulus when compared with pre-crisis period.
In fact the Prime Minister's economic advisory council had recommended that stimulus be withdrawn in the Budget to help boost revenue. However, the Finance Minister is probably unconvinced with the economic recovery as yet and, particularly given the global scenario, wants to further strengthen the growth perspectives before further hiking excise or services taxes. "I believe that a part of the current recovery must be stored away to build future resilience. Indeed, a counter-cyclical fiscal policy is our best insurance against external shocks and localized domestic factors,' said Mukherjee in his Budget Speech.
In further relief for the India Inc, the surcharge on corporate tax on all domestic companies has been cut from 7.5% to 5%. This is a move forward to the direct tax code (DTC) to be applicable from FY13, which does away with surcharges all together. However, the Minimum Alternate Tax (MAT) has been further increased to 18.5% from 18% which would mean that cut in surcharge will have no real impact on companies which come under the MAT.
The S&P CNX Nifty opened at 5,382.00; about 49 points higher compared to its previous closing of 5,333.25, and has touched a high and a low of 5,409.95 and 5,373.55 respectively. The index is currently trading at 5,409.50, higher by 76.25 points or 1.43%. There were 45 stocks advancing against just 5 declines on the index.
The top gainers of the Nifty were Bajaj Auto up by 4.30%, M&M up by 3.01%, Jaiprakash Associates up by 2.98%, Tata Motors up by 2.84% and IDFC up by 2.79%.
Dr Reddy down by 1.00%, Wipro down by 0.75%, Bharti Airtel down by 0.66%, HCL Tech down by 0.62% and CAIRN was down by 0.59%, were the major losers on the index.
All the Asian counterparts were trading in the green; Shanghai Composite was up 18.51 points or 0.64% to 2,923.56, Hang Seng was up 23.80 points or 0.10% to 23,361.82, Jakarta Composite was up 23.12 points or 0.67% to 3,493.46, KLSE Composite was up 5.85 points or 0.39% to 1,497.10, Nikkei 225 was up 94.68 points or 0.89% to 10,718.77, Straits Times was up 48.74 points or 1.62% to 3,059.25 and Taiwan Weighted was up by 112.75 points or 1.31% to 8,712.40.
The BSE Sensex opened at 17,982.28; about 159 points higher compared to its previous closing of 17,823.40, and has touched a high and a low of 18,077.95 and 17,964.39, respectively. The index is currently trading at 18,076.64, up by 253.24 points or 1.42%. There were 27 stocks advancing against just 3 declines on the index.
The overall market breadth has made a strong start with 77.80% stocks advancing against 24.22% declines. The broader indices were performing well at this point of time; the BSE Mid cap and Small cap indices surged 1.39% and 0.92% respectively.
The top gaining sectoral indices on the BSE were, Auto up by 2.61%, Bankex up by 1.97%, CG up by 1.78%, FMCG up by 1.62% and Realty was up by 1.59%. While there were no losers on the index.
The top gainers on the Sensex were Bajaj Auto up by 4.08%, M&M up by 3.12%, Tata Motors up by 2.62%, Jaiprakash Associates up by 2.52% and Hero Honda was up by 2.39%.
Bharti Airtel down by 0.88%, Wipro down by 0.87% and TCS down by 0.32%, were the only losers on the index.
Meanwhile, The Union Budget for 2011-12 presented in lower house of Indian Parliament on Monday by the Union Finance Minister Pranab Mukherjee appears to be a finely balanced act of widening the tax base while providing some relief to inflation hit individual and corporate tax payers at the same time.
The Budget provided relief to individual tax payers by hiking the tax exempted income level to Rs 1.8 lakh. For senior citizens, the same has been increased to Rs 2.5 lakh. For super senior citizens, a new category for people aging over 80 years, the exemption is even higher at Rs 5 lakh. However, the Budget does away with preferential treatment to women accesses by equating the exemption limit for both the sexes, an example of gender equality that women would probably not like.
There were two major reliefs to the corporate India. First, the 2% balance stimulus that was still prevalent in economy has been left untouched. The government had cut the excise duty by 4% across the board and services tax by 2% following the global slowdown. While excise duty was hiked by 2% last year, both the services tax and general excise duty have been left untouched this year, thus leaving a 2% fiscal stimulus when compared with pre-crisis period.
In fact the Prime Minister's economic advisory council had recommended that stimulus be withdrawn in the Budget to help boost revenue. However, the Finance Minister is probably unconvinced with the economic recovery as yet and, particularly given the global scenario, wants to further strengthen the growth perspectives before further hiking excise or services taxes. "I believe that a part of the current recovery must be stored away to build future resilience. Indeed, a counter-cyclical fiscal policy is our best insurance against external shocks and localized domestic factors,' said Mukherjee in his Budget Speech.
In further relief for the India Inc, the surcharge on corporate tax on all domestic companies has been cut from 7.5% to 5%. This is a move forward to the direct tax code (DTC) to be applicable from FY13, which does away with surcharges all together. However, the Minimum Alternate Tax (MAT) has been further increased to 18.5% from 18% which would mean that cut in surcharge will have no real impact on companies which come under the MAT.
The S&P CNX Nifty opened at 5,382.00; about 49 points higher compared to its previous closing of 5,333.25, and has touched a high and a low of 5,409.95 and 5,373.55 respectively. The index is currently trading at 5,409.50, higher by 76.25 points or 1.43%. There were 45 stocks advancing against just 5 declines on the index.
The top gainers of the Nifty were Bajaj Auto up by 4.30%, M&M up by 3.01%, Jaiprakash Associates up by 2.98%, Tata Motors up by 2.84% and IDFC up by 2.79%.
Dr Reddy down by 1.00%, Wipro down by 0.75%, Bharti Airtel down by 0.66%, HCL Tech down by 0.62% and CAIRN was down by 0.59%, were the major losers on the index.
All the Asian counterparts were trading in the green; Shanghai Composite was up 18.51 points or 0.64% to 2,923.56, Hang Seng was up 23.80 points or 0.10% to 23,361.82, Jakarta Composite was up 23.12 points or 0.67% to 3,493.46, KLSE Composite was up 5.85 points or 0.39% to 1,497.10, Nikkei 225 was up 94.68 points or 0.89% to 10,718.77, Straits Times was up 48.74 points or 1.62% to 3,059.25 and Taiwan Weighted was up by 112.75 points or 1.31% to 8,712.40.
No comments:
Post a Comment