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@3.30 PM: Infosys responsible for 50 per cent of Nifty50's fall.
@3.30 PM: ICICI Bank, HDFC, RIL, SBI, DRL among top Sensex gainers; ONGC, BHEL, Maruti top losers.
CLOSING BELL: Budget fails to lift market; Sensex tanks 152 pts; Nifty50 below 7K; ONGC cracks 10%, BHEL 5%, Maruti 4%. Read more
@3.19 PM: Maruti tanks over 5 per cent after FM announced 4 per cent tax on SUVs, 1% on small cars and 2.5% on diesel cars.
@3.14 PM: ONGC tumbles over 10 per cent in trade, becoming the top loser on Sensex, after the FM proposed to levy a cess at the rate of 20 per cent on domestically produced crude oil, calculated ad valorem, as against the present rate of Rs 4,500 per tonne. Industry has been lobbying to link the cess on oil to an ad valorem rate and was expecting it to be in the range of 8-10 per cent.
@3.00 PM: Sensex down 130 points, Nifty50 below 7,000.
@2.52 PM: Rashesh Shah, Chairman & CEO, Edelweiss Group: Overall, we should not see the market as a reflection of the Union Budget, but as FII selling.
@2.30 PM: Nilesh Shah, Envision Capital: I see some disappointment on the PSU bank front because Rs 25,000 crore is slightly below what the market had expected. But I think the big takeaway is sticking to the path of fiscal consolidation.
@2.06 PM: Cigarette stocks rebound. ITC, Godfrey Phillips, VST surge up to 7 per cent.
@1.45 PM: Prashant Jain, HDFC AMC: It is a very good budget and I do not think we should judge the budget by the kneejerk reactions of the market.
@1.20 PM: BSE Sensex recovers almost 850 points from the day's low of 23,083.18. The index was trading about 150 points higher at 23,300.
@1.18 PM: Market in the green. Sensex up 150 points.
@1.13 PM: FM said the government would divest Rs 36,000 crore worth of its minority stakes in PSUs, while it will raise another Rs 20,500 crore from strategic sales. He said the government was ready to trim its stake in IDBI Bank and also other PSU players below 51 per cent. IDBI Bank shares rose as much as 7 per cent during the Budget speech.
@12. 56 PM: Cigarette stocks took a hammering, falling up to 7 per cent in trade on Monday after the finance minister Arun Jaitley in his Budget speech proposed a hike of up to 15 per cent in excise duty on most tobacco products.
Stocks of ITC, the country's largest cigarette maker, were trading at 269.55, down 7.37 per cent. Godfrey Philips - the manufacturer of cigarette brands Malboro, Vavenders, four square and Red & While - slumped 4 per cent to Rs 980.
@12.53 PM: Sensex rebounds, reclaims 23,000 mark, lets Budget settle in.
@12.47 PM: Major steel stocks like Tata Steel, SAIL and JSW Steel gained with the finance minister Arun Jaitley announcing higher investment on infrastructure. While Tata Steel was up 1.99%, Steel Authority of India gained 2.16% and JSW Steel jumped 1.54% on the BSE.
@12.39 PM: ITC shares slump 5% to Rs 276.75 after the FM raised excise duty hike on most tobacco and tobacco-related products by 10-15 per cent. ITC was biggest drag on Sensex.
@12.35 PM: RIL shares up marginally after the FM proposed incentives to energy sector players for deep-sea exploration. But Sensex down 330 points at 22,804.
@12.31 PM: ITC shares down 1.56 per cent after the FM raised excise duty on most tobacco and tobacco-related products by 10-15%. Move negative also for Godfrey Philips, VST Industries.
@12.30 PM: Huge swings on D-Street. Sensex pares losses. Now down 350 points.
@12.28 PM: Sensex down 650 points!
@12.25: Bloodbath on D-Street: Sensex plunges over 550 points; Nifty50 hits fresh 52-week low at 6,858.
@12.23 PM: Government committed to implementing GAAR from April 1, 2017, says FM. Nifty50 down over 100 points, hits below 6,950.
@12.18 PM: Budget not the only reason for the market fall. Weak cues from Asian markets drag Sensex drags over 300 points. Dow Futures down 100 points.
@12.17 PM: IDBI Bank shares rally 7 per cent to Rs 59, after the government said it may trim stake in the bank below 51 per cent.
@12.12 PM: Rs 25,000 crore allocation towards bank recapitalisation, promise of bankruptcy code fail to lift bank stocks. BoB down 2.26 per cent, Kotak Bank 2.23 per cent, Yes Bank 1.47 per cent, IndusInd Bank 1.27 per cent, HDFC Bank 1.21 per cent, Axis Bank 1.15 per cent, PNB 1.10 per cent. SBI marginally up 0.16 per cent, ICICI Bank 0.89 per cent.
@12.07 PM: FM sticks to 3.5 per cent fiscal deficit target. But Sensex down 150 points. Bank stocks tumble. SBI pares all the gains to slip into the red, down 0.26 per cent.
@12.06 PM: M&M shares rally nearly 2 per cent to Rs 1,252 on big Budget focus on rural sector and agriculture sector.
@12.05 PM: Govt maintains fiscal deficit target for FY16 at 3.9%, peg FY17 target at 3.5%. Sensex tanks over 150 points. Nifty50 below 7,000 again.
@12.04 PM: Cipla shares are down 1.5%, Sun Pharma nearly 1 per cent despite big Budget focus on healthcare and generic pharma sectors.
@12.02 PM: Government says it is weighing reducing stake in IDBI Bank below 51 per cent. Shares up 2.16 per cent to Rs 56.80 .
@11.57 AM: Market sees a turnaround as FM raises outlay for infrastaructure sectors, seeks to address banking sector woes. Sensex up 30 points at 23,174.
@11.53 AM: Market swings back and forth on Budget cues; pares losses. Sensex, Nifty50 in the green again.
@11.48 AM: BSE IT, Consumer Goods, TECk, FMCG, IPO, Power, Midcap indices among top sectoral losers.
@11.45 AM: Wipro, GAIL Maruti, Hero MotoCorp prove biggest drags. SBI biggest gainer.
@11.42 AM: Milind Kothari, Managing Partner & Head - Direct Tax, BDO India: As per the FM, only 46% of cultivable land has access to Irrigation. New initiatives to increase irrigation access to farmers will go a long way in de-risking agriculture sector from vagaries of monsoon. In the long term, a successful irrigation policy would augur very well for the Indian economy. This will also take care of fast depleting water tables across India.
Watch out: Jain Irrigation, EPC Industries Ltd, KSB Pumps, Shakti Pumps. Kirloskar Industries, Kaveri Seeds, Monsanto India.
@11.40 AM: D-Street taking Jaitley's focus on rural and social sector with a pinch of salt. Sensex tanks over 100 points 45 minutes into the Budget speech. Nifty50 below 7,000.
@11.38 AM: Rs 5,500 crore has been allocated for crop insurance scheme.
Watch out: Insecticides India, Bayer Cropsciences, PI Indus, Sharda Crop, United Phosphorous, Punjab Chemicals.
@11.33 AM: Market in the red. Sensex down 25 points, Nifty50 down 9 points.
@11.24 AM: Budget sets aside Rs 19,000 crore allocated for rural roads development. Watch out IRB Infrastructure, Gayatri Projects, KNR Construction, MBL Infrastructure.
@11.20 AM: 20 minutes into Budget speech, Sensex pares intial gains; SBI surges over 4 per cent, Tata Steel 3 per cent, M&M and ONGC 2 per cent each; Wipro (2 per cent), GAIL ( 2 per cent), Infosys (2 per cent) top Sensex losers.
@11.16 AM: Farm, social infra and banks top three priorities of Union Budget 2016: FM
@11.10 AM: Market in the green
Sensex surges 140 points as FM Arun Jailtey begins Budget speech, Nifty50 tests 7,050.
Bank stock investors seem to be banking on the Budget. SBI shares are up 5%, BoB 3.5 per cent, PNB 3.38 per cent, ICICI Bank 2.35 per cent, HDFC Bank 0.20 per cent.
@11.00 AM: And it's here! Finance Minister Arun Jaitley begins Budget speech.
LIVE UPDATE: Let's talk STOCKS
@10.54 AM: With less than 10 minutes to go, Indian Finance Ministers are known for delivering lengthy Budget speeches peppered with funny gems and lyrics. I like this one from former Finance Minister Pranab Mukherjee's Budget in 2012:
"I must be cruel only to be kind"
Let's what Jaitley has in store!
@10.50 AM: Meanwhile on Dalal Street, telecom stocks slipped in trade after the Delhi HC upheld the Trai penalty on the telecom firms over call drop. Bharti Airtel slipped 1.5 per cent to Rs 313, Idea fell nearly 1 per cent to Rs 104 and Reliance Communication slumped 2.6 per cent to Rs 52. The HC ruled that Trai was free to act on the same and the penalty slapped on the telcos will be applicable for January 1.
@10.45 AM: Okay, this quotable quote I just retrieved for you from Finance Minister Arun Jaitley's last year's Budget Speech.
"It's quite obvious that incremental change is not going to take us anywhere. We have to think in terms of a quantum jump"
@10.40 AM: HEARD ON THE STREET
If Seventh Pay Commission award and OROP implemented...
It will be a big boost for the urban consumption theme.
Watch out: PVR, INOX Leisure, Maruti, Wonderla Holidays, Cox and Kings, Thomas Cook India, Blue Star, Voltas, Hitachi Home, Whirlpool, Lloyd Electric and Engineering, among others.
If there is an increase in excise duty on cigarette and liquor...
Double-digit hike in excise duty to hit cigarette makers' volumes hard.
Watch out: ITC, Godfrey Phillips.
@10.25 AM: In just half an hour before we'll get to see the Budget, here is what some Dalal Street biggies want to see in it.
Ridham Desai, Morgan Stanley: I think continuing on the path of fiscal consolidation is imperative, it has generated substantial reward for India. India is being viewed globally as one of those emerging markets that have started fixing structural problems.
@10.18 AM: HEARD ON THE STREET
If infrastructure spends rise...
Will boost infra investments and augment the government's vision of Smart Cities and Make in India projects.
Watch out: Larsen & Toubro, Va Tech Wabag, Supreme Industries, IRB Infrastructure, NBCC, Ashoka Buildcon, Gayatri Projects, CCI, GDL, LIC Housing Finance, and HDFC, among others.
@10.15 AM: Dalal Street veterans say Nifty upside limited, unlikely to top 7,200 after Budget. Shankar Sharma says bulls can hope for a technical rally as most negatives are priced in.
@10.12 AM: HEARD ON THE STREET
If corporate tax rationalised...
Positive for consumer companies and other companies with effective tax rate of over 30% annually.
Watch out: ITC, Britannia Industries, Tata Global Beverages, GlaxoSmithKline Consumer Healthcare, HDFC Bank, Bajaj Finance, IndusInd Bank, Kalpataru Power Transmission, Thermax, PTC India, Granules India and MNCs like Abbott India, GlaxoSmithKline Pharmaceuticals, Merck, Sanofi, Pfizer India, AstraZeneca.
If capital infusion in PSU banks raised, push for bankruptcy code announced...
Positive for banks
Watch out: Capital-starved PSBs banks like Union Bank of India, Bank of India, IDBI Bank, Allahabad Bank. Bankruptcy code can be positive for the banks and subsequently, for the credit markets.
@10.10 AM: Shankar Sharma, First Global: Bulls can be hopeful of a technical rally as most negatives are priced in.
@10.06 AM: Shankar Sharma, First Global: Not sharing crude oil benefit with customers was the biggest blunder this government has
@10.03 AM: Shankar Sharma, First Global: Tweaking long-term capital gains tax is not desirable now. If you keep taxing people with too many cess, it would be adding insult to the injury.
@10.00 AM: Meanwhile, industry heavyweights are dragging Nifty50 down. BPCL, Hero MotoCorp, ZEE fall 2 per cent each.
SBI biggest gainer in Nifty50 right now, up nearly 4 per cent to Rs 161 on expectation of a bid bank recapitalisation package from the government.
@9.52 AM: HEARD ON THE STREET
If service tax rate rises by 2% to 16%...
It will affect media, leisure, hospitality, telecom. Watch out: Cox & Kings, Thomas Cook, Wonderla Holidays, Speciality Restaurants, INOX Leisure, PVR, Dish, Bharti Airtel, Idea Cellular and Max Financial Services, Bajaj Finserv.
If big steps are taken to boost rural economy.. .
Will help improve rural demand. Watch out: PVR, INOX Leisure, Maruti, Wonderla Holidays, Cox and Kings, Thomas Cook India, Blue Star, Voltas, Hitachi Home, Whirlpool, Lloyd Electric and Engineering, among others
Also read: Five stocks that should be on your watchlist today
@9.48 AM: The Nifty PSU index has fallen nearly 50% in the last one year. Almost all the stocks in the index haven fallen over 20%. In the Economic Survey, the government said that it plans to infuse Rs 70,000 crore in the next few years, but PSU banks would need at least Rs 1.8 lakh crore by FY19. Any roadmap laid down by the government in terms of recapitalization will be positive for PSU banks.
@9.43 AM: Shares of ITC and Godfrey Phillips have fallen 11% and 27% respectively so far in the year 2016. The expectations are that there will be a likely increase in excise duty on cigarette and Indian manufactured liquor to curb consumptions is likely to hurt players like ITC, Godfrey Phillips, and liquor companies such as United Spirits and Radico Khaitan.
@9.40 AM: HEARD ON THE STREET
If there is anything on GST...
It will be positive for retail, auto, media, paints, plywood and logistics. Watch out: CCI, Gateway Distriparks, PVR, INOX Leisure, Century Plyboards, Greenply, among others.
@9.45 AM: MARKET POLL
► 73% of respondents dont see Nifty above 7,200 on Budget Day.
► 72% respondents expect long-term capital duration to stay at 1 year.
► 53% respondents expects Nifty to fall over 500 points if LTCH tax is tweaked.
► 37% respondents see government relaxing fiscal deficit target.
► 42% respondents see 10-year yield to move above 8% if government misses fiscal target.
► 64% respondents expect FY17 net borrowing at over 4.5 lakh crore.
@9.38 AM: SBI (up 2 per cent), ONGC (up 1.5 per cent), Dr Reddy's (up 0.9 per cent), ICICI Bank (up 0.92 per cent), and Tata Steel (up 0.8 per cent), were the major Sensex gainers.
ITC (down 1.6 per cent), Hero MotoCorp (down 1.2 per cent), Adani Ports (down 1.1 per cent), and Cipla (down 1.08 per cent) were the major Sensex gainers.
@9.25 AM: The S&P BSE Midcap Index was down 0.05 per cent and BSE S&P Smallcap Index was trading flat.
@9.20 AM: The 30-share index was trading at 23,142, down 12 points or 0.05 per cent. It touched a high of 23,248.27 and a low of 23,095.70 in morning trade.
The Nifty50 was trading at 7017 down 13 points or 0.18 per cent. It touched a high of 7,053.30 and a low of 7,006.15 in the first 30 minutes of trade.
OPENING BELL: Sensex, Nifty50 open flat ahead of Budget 2016; JP Infratech surges 6%, CIL 2%, SBI 1%.
@9.04 AM: And this is what's happening in Asia:
@9.02 AM: Rupee opens lower by 10 paise, trades at 68.72 against US dollar ahead of Union Budget 2016.
@8.46 AM: And here's how the US and European markets ended last week:
@8.43 AM: Domestic equity benchmarks are likely to open on a cautious note, as investors keenly await Finance Minister Arun Jaitley to unveil the Union Budget for the new financial year. Nifty50 stock futures on the Singapore Stock Exchange were trading 20 points lower at 7,045, indicating a negative opening for the domestic market.
Also read: Nifty50 likely to open on negative note ahead of Budget speech
@8.30 AM: Sensex fell 2.3% last week. Here goes a recap of how the benchmark index ended on Friday...
@8.20 AM: Here are all small and big stories that might affect your market today:
► The third Budget of the Modi government is set to be unveiled today and Dalal Street is not at all euphoric about it. With global cues dominating market trends and the Sensex posting its worst returns in several years during the pre-Budget week, things aren't looking rosy.
► Nobody likes the past come back to haunt, more so when that past involves taxation. Foreign investors have been riled for years over retrospective taxation and now media reports suggest the FM may finally address the issue to soothe their nerves.
► Warrent Buffett believes the US economy's health is better than what some of the US presidential candidates will have you believe.
► Citi Group has gone 'overweight' on gold as investors' flow into the metal was the most since June 2009. This morning gold was trading $1 lower at $1,222 an ounce.
► Finance ministers or their representatives of the world's top 20 economies met in Shanghai on Friday and Saturday to chit-chat about the health of the world economy.
Also read: What changed for markets while you were sleeping
@8.15 AM: And here are some buy/sell ideas for B-Day trade:
@8.00 AM: Good morning, ladies and gentlemen. Welcome on board for the Big Budget Day!
I am tempted to begin the day with this:
Jacob Lew, the US Treasury Secretary, incidentally waded into a political controversy this weekend, by suggesting that Britain should stay in the European Union and avoid a so-called Brexit.
But that bit for another day.
For now, stay with us for this eventful day. We promise to bring you all the market updates peppered with accounts of market proceedings, actionable points and all the relevant anecdotes.