28 Feb 2011 Closing Market Updates

28 Feb 2011 Closing Market Updates  15:31

Market was riding on tides of assumptions n expectations as Hon .Pranab Mukherjee announced the Union Budget for FY 2011-2012. Nifty made a day high of 5477 but failed to hold the steam and ended just 30.65 points in positive at 5334.20. Sensex satisfied to end 129 points higher from 595.59 points gain in mid session. Sensex ended at 17832.12 with 131.21 points gain.

Budget Positive Points :


 Current surcharge of 7.5 per cent on domestic companies proposed to be reduced to 5 per cent
 Higher exemption limit of Rs 5,00,000 for very senior citizens, who are 80 years or above
 Allocation to Sarva Shiksha Abhiyan increase by 40 per cent to Rs 21,000 crore
 Allocation for education increased by 24 per cent over current year
 Allocation of Rs 2,14,000 crore for infrastructure in 2011-12; an increase of 23.3 per cent over 2010-11
 Excise duty to be reduced from 10% to 5% on parts of specified machinery
 Surcharge for companies cut to 5 per cent, from 7.5 per cent
 Citizens over 80 years to have exemption limit of Rs 5 lakh
 Special incentives for hybrid vehicle makers if manufacturing done in India to be positive for auto companies
 Crude palm used in sports exempted from customs duty to be positive for palm oil companies
 Duty reduced on hybrid & electric cars along with batteries imported for such vehicles
 Senior Citizen Age Limit reduced from 65 years to 60 years for Income Tax purposes
 Naina Lal Kidwai: The green orientation of the budget is a welcome positive
 Basic customs duty on agricultural machinery reduced to 4.5 per cent from 5 per cent
 Uday Kotak: Direct investment in Indian Mutual Funds by any foreigner is a big move
 Uday Kotak: MFs allowed to raise money from foreign investors is pathbreaking
 Uday Kotak: Budget is positive for equity markets
 Uday Kotak: Lower fiscal deficit target is commendable
 No import duty on ship parts positive for SCI
 Tax exemption limit for senior citizens raised to Rs 2.5 lakh from 2.4 lakh


Budget Negative Points :


 Rate of MAT proposed to be increased from 18 per cent to 18.5 per cent of book profits
 Lower rate of Central Excise Duty enhanced from 4 per cent to 5 per cent
 AC restaurants serving liquor to come under service tax net
 Health Check-Ups in Private hospitals to become expensive
 EXPENSIVE: International Air Travel
 EXPENSIVE: Domestic Air Travel
 Tax on life insurance service providers could be negative for insurance companies
 Travel, Healthcare to become expensive due to increased service tax
 Lack of FDI in retail was a disappointment
 Nirmal Jain: New service tax to hurt companies in hospitality
 Hike in export duty on Iron Ore is a negative, says Motilal Oswal
 Air travel to cost more
 Branded clothes may cost more
 Rise in MAT to hurt RIL, GVK Power, telcos
 FY 11 fiscal deficit above estimates, negative, says Motilal Oswal
 Swaminathan: Divestment but no privatisation is timid
 Swaminathan A Aiyer: Doubled anganwaadi wages with a check on absenteeism not good.

Among BSE Sectoral Indices, FMCG gained the most by 4.57% whereas Consumer Durables was the sector which was the top losing sector.It lost 0.21% today.
In Nifty50 stocks, ITC gained the most by 8.41% and ended at 169.45 as no additional taxs levied on cigarrettes. On the other hand, Sesagoa was the top loser by 6.80% which ended at 263.3.
Powergrid was the turnover topper by the traded value as well as number of shares traded today on NSE.
Advance/Decline Ratio was positive as 790 stocks gained and 584 stocks declined today on NSE.

Major World Indices :
Hang Seng : +325.65
Nikkei : +97.33
FTSE : -35.64
CAC : -3.97
DAX : -18.47
Dow Futures : -10.00
Nasdaq Futures : -3.50