Investors on Dalal Street gave a thumbs up to the Union Budget 2023 as Sensex zoomed over 1200 points to hit a day's high of Rs 60,773.44. Nifty also jumped over 250 points to cross the 17,900 important mark.
Shares of ICICI Bank, Tata Steel, HDFC, L&T and HDFC Bank were among the top gainers. On the flip side, shares of Adani Enterprises, HDFC Life, Adani Ports and SBI Life were among the top losers.
Notably, Finance Minister Nirmala Sitharaman, in her Union Budget 2023-24 speech, increased the income tax (I-T) exemption limit to Rs 7 lakh from earlier Rs 5 lakh under the new tax regime.
"Tax exemptions under the new tax regime will provide increased disposable income in the hand of salaried consumers which will help boost the demand of small and large home appliances thus benefitting Havells, Bajaj Electricals, V-Guard, etc," said ICICI Securities.
Railway stocks were trading mostly higher on Wednesday after Finance Minister Nirmala Sitharaman announced the highest ever-budgetary outlay for railways in her budget speech. Sitharaman announced to allocation of Rs 2.4 lakh crore for the railway sector while presenting the Union Budget 2023.
Shares of power companies also surged after finance minister Nirmala Sitharaman announced an outlay of Rs 35,000 crore for energy transition investment.
The finance minister said capital investment outlay has been increased by 33% to Rs 10 lakh crore, which will be 3.3% of GDP. With this, capital investment outlay has been increased for the third year in a row. The allocation is higher than the Rs 7.5 lakh crore budgeted for in the previous year and the highest on record. Capital outlay of Rs 2.4 lakh crore has been provided for Railways in FY24, said Sitharaman.
"In keeping with its focus on inclusive growth, the Union Budget has hiked outlays on Infrastructure and Agriculture which in our view would have a force multiplier impact on the economy," said S Ranganathan, Head of Research at LKP Securities.
"Increased Outlay towards Energy Transition, Railways, Affordable Housing & Urban Infrastructure indicates GOI resolve on enablers for growth. A fiscal Deficit estimated at 5.9% of GDP meets street expectations on fiscal prudence. The Budget has put more money in the hands of the people through relief from Income Tax which to our mind is a very positive step. Budget leaving Taxation on Capital Gains untouched is a big positive," he added.