Budget 2023: Sensex jumps over 1,200 points post FM Nirmala Sitharaman's budget announcement
By Team Newsable | First Published Feb 1, 2023, 9:00 AM ISTThe markets have turned towards the Union Finance Minister for some much needed respite. Expectations are high with regards to Budget 2023 providing a boost to rural consumption that continues to struggle and also simplify taxation norms for the middle class.
Benchmark BSE Sensex on Wednesday (February 1) zoomed over 1,200 points in the afternoon trade as market investors cheered the Union budget proposals presented by Finance Minister Nirmala Sitharaman in the Lok Sabha.
The 30-share BSE barometer zoomed 1,223.54 points or 2 percent to its intra-day high of 60,773.44. The broader NSE Nifty jumped 310.05 points or 1.75 per cent to 17,972.20.
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The market had mixed expectations on the budget presuming it to be populist and low elbowroom for the government ahead of the slowing economy, high inflation and interest rates. However, the government has taken it to a new zone with a well-tuned perfection between growth and stability.
Speaking to a news agency, Vinod Nair, head of Research at Geojit Financial Services said, "The rise in capital expenditure by 33 per cent to Rs 10 lakh crore is the shot in the arm heading a multiplier effect on the economy. While high amount of schemes and tax benefit to rural economy and taxpayers will enhance consumption growth in India. Much beyond expectations, a win-win for households and corporates. It is a 10 on 10 budget."
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Sunil Damania, Chief Investment Officer, MarketsMojo, said that overall, the budget is "excellent". The absence of negative news is a tremendous source of optimism. And the stock market has been ecstatic about this budget.
"The relief on personal income tax by providing rebate up to Rs 7 lakh and making changes in the slab rate under the new income-tax regime comes as a major boost to the Indian markets. The FM did not tinker with the capital gains which has cheered the markets," said Sanjay Moorjani, Research Analyst, SAMCO Securities.
On Wednesday, Finance Minister Nirmala Sitharaman tweaked the slabs to provide some relief to the middle class by announcing that no tax would be levied on annual income of up to Rs 7 lakh under the new tax regime.
She also allowed a Rs 50,000 standard deduction to taxpayers under the new regime, where assessees cannot claim deductions or exemptions on their investments.
Meanwhile, an overall positive trend in the global markets also cheered investors. From the Sensex pack, ICICI Bank, Larsen and Toubro, HDFC, HDFC Bank, IndusInd Bank, Tata Steel and Kotak Mahindra Bank were the major gainers. On the other hand, Titan and Mahindra and Mahindra were the laggards.
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