The stock market was seen fluctuating today with the announcements of the budget. But at the end of the business, it almost closed. The shares of consumer companies gained momentum in the hope of increasing consumption demand from income tax cuts. But the index could not maintain its lead due to the decline in the shares of the infrastructure sector.
During the trading, the Sensex touched a height of 77,899 and also came up to a low of 77,006. At the end of the trading, the Sensex closed at around 77,506 and the Nifty closed at 23,490 with a marginal gains of 19 points. Due to the general budget, a special session was held in the stock markets on Saturday. To increase domestic demand, the government has announced a big relief to individual taxpayers.
Now those with annual income of up to Rs 12 lakh will not have to pay any income tax. The first tax -free income limit was Rs 7 lakh annually. The income tax exemption limit for salaried taxpayers with a standard deduction of Rs 75,000 will be Rs 12.75 lakh. Apart from this, tax rates have also been changed, which will benefit taxpayers of every category. The government’s move aims to increase consumption of families and accelerate investment.
The hopes of tax cuts led to an increase in shares of consumer -centric companies. ITC rose by 3.3 percent. Jomato recorded the highest rise in Sensex by 7.2 per cent. The BSE FMCG index rose by 2.9 per cent, which is the biggest rise of one day after June 6, 2024.
Avenue Supermart, who ran the retail series, closed with a stock of 9.6 per cent and Trent 7.5 per cent. Electric equipment and domestic goods manufacturing company has gained 5.7 per cent in the liquor company and 9.4 per cent in the liquor company Radiico Khaitan and 5 per cent in United Spirits.
Saurabh Mukherjee, founder and Chief Investment Officer of Marselus Investment Managers said, “Keeping in mind the lesson of the 2024 general election mandate, the government has taken measures to provide relief to the poor, middle class and SME. Capital expenditure has not been increased much. Tax cuts may take some quarter to affect the economy, but this is likely to speed up the economy which has softened in recent times.
UR Bhatt, co-founder of Alphaniti Fintech, said that the government has encouraged areas that could affect the US-China fee. He said, ‘The most part of China’s goods exported to the US is of toys, leather products and electronics goods. Keeping this in mind, the government has announced incentive for these areas to promote the export of these products. Tax deduction will be more money for people, especially for the expenses in the hands of the middle class, which will benefit consumer companies.
Due to tax deduction, the government exchequer will cost Rs 1 lakh crore, in view of which the government has increased the capital expenditure slightly and has proposed to increase it to Rs 11.21 lakh crore. In the last financial year, a provision of Rs 10.18 lakh crore was made for capital expenditure. Larsen and Toubro’s stock closed down 3.4 per cent due to lack of much increase in capital expenditure. UltraTech recorded 2.3 per cent and Ambuja Cement by 2.2 per cent. The total market capitalization of companies listed on the Bombay Stock Exchange declined by Rs 20,000 crore to Rs 424 lakh crore.
Mukherjee said, ‘Investors who bought shares of companies living in profit from the government’s capital expenses have been disappointed. This time the emphasis was not shown this time to promote the economy on the basis of capital expenditure. Today, the cash segment took a turnover of Rs 1.08 lakh crore, which is more than Rs 1.01 lakh crore in January. Foreign portfolio investors sold Rs 1,327 crore. In January, he sold shares worth Rs 86,367 crore.