Nifty snapped a four-day winning streak and closed with sharp losses on Friday as the Budget, which was presented by Finance Minister Sitharaman, failed to cheer the markets. The sentiment was hurt after hopes of a lower corporate tax were crushed. Corporate tax rate of 25% was extended to all companies having an annual turnover up to Rs400cr from Rs250cr earlier.
Jewelry makers and retailers were in action after the government proposed to increase import duty on gold and precious metals to 12.5% from 10%. NBFCs advanced after the budget proposed purchase of high-rated assets of financially sound NBFCs. In addition, the PSU banks were in action after budget proposed capital infusion of Rs70,000cr. Proposed additional excise duty of Rs1/litre and road cess of Rs1/litre on petrol and diesel also led to volatility in HPCL, BPCL and IOC.
Coming week promises to be full of action as well. June Consumer Price inflation and May Industrial Production data will be released. Besides, the currency and crude oil moves will also be closely watched for cues.
For the week, Metals index plunged by 4.4%, IT index fell by 2.5%, Pharma index was down by 1.7%, Realty index was down by 1%, Energy index declined by 1.4%, Midcap 100 index declined by 0.7% and Auto index was down by a percent.
For the week, PSU Bank index rose by 3.5%, FMCG index gained by 1.5%, Bank Nifty gained by 1.1%, Media index was up by 0.5% and Infra index edged higher by 0.2%. For the week, Nifty index declined by 1.1%.
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