Benchmark indices Sensex and Nifty remained volatile on Saturday after the Union Budget presentation as investors saw little coming in from the Finance Minister Nirmala Sitharaman for retail investors and the overall markets.
Stock indices opened with gains and traded in the positive territory during the Budget presentation. However, soon after Sitharaman completed her Budget speech in Parliament, the 30-share BSE benchmark Sensex declined 494.1 points to 77,006.47 in the late afternoon trade. The NSE Nifty went lower by 162.35 points to 23,346.05.
Later, Sensex pared losses to trade sideways at 77,509.90 while Nifty was at 23,495.30. Both benchmarks had rallied for the past four trading days.
The markets were open on Saturday due to the presentation of the Union Budget.
From the 30-share blue-chip Sensex pack, Bajaj Finserv, UltraTech Cement, Larsen & Toubro, Power Grid, Tata Steel, and State Bank of India were the major laggards.
Zomato, Maruti, ITC, Mahindra & Mahindra, and Titan were among the biggest gainers.
In a relief to the middle class, Sitharaman on Saturday exempted annual income of up to Rs 12 lakh from income tax and rejigged tax slabs as part of her reformist Budget.
Presenting her eighth straight Budget in the Lok Sabha, she laid out a blueprint for next generation reforms, including raising FDI limit in insurance sector, simplification of tax laws, cutting duties on intermediaries while providing enhanced fiscal support for welfare measures.
This she did while sticking to the fiscal consolidation roadmap that projected the fiscal deficit to come down to 4.4 per cent of the GDP in the 2025-26 financial year.
"The Union Budget largely played to our expectations, particularly with the much-needed income tax relief for the middle class, which will drive consumption and economic growth. No changes were made to Securities Transaction Tax or capital gains tax, as anticipated," Pranav Haridasan, MD and CEO, Axis Securities, said.
For the current financial year, the fiscal deficit has been pegged at 4.8 per cent of the GDP.
"The key highlight of the Budget is income tax relief for the middle class. Additionally, the government has maintained its fiscal glide path, targeting a fiscal deficit of 4.4 per cent of GDP, while emphasising ease of doing business.
"Unlike previous Budgets that focused on increasing capital expenditure, this time the priority appears to be efficient deployment of allocated funds rather than just raising allocations," Sunil Damania, Chief Investment Officer, Mojopms, said.
Asian markets are closed on Saturday due to holidays. US markets ended lower on Friday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,188.99 crore on Friday, according to exchange data.
Global oil benchmark Brent crude dipped 0.29 per cent to USD 75.67 a barrel.
Rallying for the fourth day running on Friday, the 30-share BSE benchmark ended 740.76 points, or 0.97 per cent, higher at 77,500.57. The Nifty rallied 258.90 points, or 1.11 per cent, to 23,508.40.
