Market Outlook for the day – Until the index is able to cross 6000-6100 range on a closing basis range bound move is expected to continue.
Key Highlights of Interim Budget-2014:
· The Government of India announced capital infusion of Rs. 11,200 crore in public sector banks in the fiscal year 2014-15.
· The disinvestment target for FY14 cut to Rs16,027cr versus Rs40,000cr; next year Government eyeing Rs36,925cr.
· Growth in the third and fourth quarter of the current year is expected to be 5.2% and that for the whole year has been estimated at 4.9 %.
· The current financial year will end on a satisfactory note with the fiscal deficit at 4.6 % (below the red line of 4.8 %) and the revenue deficit at 3.3 %.
· Excise duty on small cars, motorcycles and commercial vehicles cut from 12 to 8%.
· Excise duty on SUVs cut from 30 to 24%.
· Large and mid-segment cars from 27-24% to 24-20%.
· Excise duty cut on capital goods, non-consumer durables cut from 12 to 10%.
· The service tax would be abolished on rice from the staple’s loading to storage stage.
· The current account deficit projected to be at USD 45 billion in 2013-14, down from USD 88 billion in 2012-13.