Budget 2018: Sensex Sheds 500 Points Off Day's High, Nifty Falls 1%

Budget 2018: Sensex Sheds 500 Points Off Day

New Delhi: Sensex and Nifty pared the early gains after Union Finance Minister (FM) Arun Jaitley presented the Budget in Parliament for the financial year 2018-19. The BSE Sensex rose initially beyond the 36,100-level, while the NSE Nifty rose past the 11,050-level, before paring some of the gains. The caution emanated from the disproportionate focus on rural economy. Arun Jaitley said that emphasis is being given on generating higher income for farmers. "The government wants to help farmers produce more and realise higher prices. We are firmly on path to achieve 8% growth. The Budget will focus on strengthening agricultural and rural economy," Jaitley said.

Sensex loses 228 points to trade at 35,737 points. Nifty falls 13 points to trade at 11015 points. Sensex lost 509 points off the day's high of 36,226.97 points. Similarly, Nifty loses 151 points off the day's high of 11,103 points to plunge to 10,951.75 points. As the FM's speech chiefly focusses on soaps for rural economy, the capital markets don't seem enthused.

Agricultural stocks, capitals goods scrips surged in wake of the big boost, promised in the Jaitley's speech. Among Sensex stocks, Larsen & Toubro (L&T), Mahindra & Mahindra (M&M), Tata Consultancy Services (TCS), IndusInd Bank and Hero MotoCorp are the top gainers. Sensex stocks are believed to be over-priced since the price/earnings (P/E) ratio is currently at 25.42.

From last year's Budget day to the current year's, the Sensex is already higher by nearly 30 per cent. Arun Jaitley assured one crore houses to be built under Pradhan Mantri Awas Yojana in rural areas following which the. BSE realty index rose by 0.92%, Nifty realty index rose by over 1%. Phoenix realty was higher by 4%. India Real estate rose by 1.9%.

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