==>> Budget not so special this time

So finally the Big day have arrived. Finance Minister Mr Mukherjee came out with a very normal and simple budget. As mentioned in my earlier blogs also, that the Budget this time will be very normal, and there will not be any new suprises. There were news that the STT will be removed, but I kept on arguing, that the STT will continue. As the traders are still paying the STT since a long time and they are comfortable with that. Government gets a huge income via STT. They have already provided with 3 stimuls packages. Abolishing of the STT would have been like, stepping on the sword. Some of the highlights of the budget are as follows.

Customs duty on bio-fuel diesel cut to 2.5% vs 7.5%

Commodities transaction tax (CTT) to be abolished

Carry forward tax credit on minimum alternate tax (MAT) to 10 years vs 7 years:

Eliminate surcharge of 10% on personal income tax

Personal income tax exemption hiked by Rs 10,000

To allocate Rs 7,000 cr to Rural Electrification Scheme

Print media stimulus extended till Dec 31, 09

Agriculture credit target at Rs 3.25 lakh cr

IIFCL to refinance 60% of bank loans for PPP projects

FY10 fiscal deficit at 6.8% of GDP:

There was no Tax rebate for the corporates. The market did not take the outcome on the Budget positively. Markets opened up strong. but continued its downward journey for the rest of the day. Sensex from the high of almost 100 points sinked nearly 950 points in the intraday session. Nifty tanked 258.55 points to close at 4165.70, after making a low of 4133.70. Sensex closed at 14043.40 down by 870 points, after making a low of 13959.50

Nifty finally closed below the 4205 levels.

Nifty has support at 4140-4090-4075 levels.

In the blog of posted on 27th June, I had mentioned that the Nifty and Sensex had opened with a huge gap that that been created when the UPA govt came into force and the Mkts had hit the upper circuit of 20%. That may be a concern. Whenever the gap has been created, that stock or index normaly comes to fill up that gap. It may fill up completely or half. Now everyone has started talking this patter. I am glad to inform the readers of this blog, that this theory was informed to th readers long time back.