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According to the global financial services major, the Budget has given more preference to stability rather than growth and this should give more room to cut key policy rates.
The headline indices tanked as Finance Minister Arun Jaitley failed to enthuse excitment on Dalal Street. Negative trend seen in Asian markets also contributed to bearish sentiment.
Finance Ministry Arun Jaitley, in his budget speech, stuck to earlier plans to provide $3.7 billion in new capital next year towards the escalating cost of a sector-wide bailout that the government estimates at $26 billion over four years.
The government has kept his fiscal deficit at 3.5 per cent for FY2017. Maintaining fiscal prudence was important to maintain credibility and stability.
Sensex tanked over 600 points at some point of trade but recovered all its losses to gain as much as 189 points only to slip again in negative terrain to eventually end the day 152 points lower.
Shares of avaition companies Jet Airways, SpiceJet and InterGlobe Aviation slipped up to 6 per cent after Finance Minister Arun Jaitley announced hike in excise duty for Aviation Turbine Fuel (ATF) from 8 per cent to 14 per cent.
Cigarette industry continues to post volume decline in the last few quarters given multiple excise duty hike initiated by the government for four consecutive years.
Jain Irrigation Systems soared 7.13 per cent, PI Industries surged 5.5 per cent, Kaveri Seed Company (4.28 per cent), Monsanto India (3.24 per cent) and Rallis India (2.46 per cent) on BSE.
IRB Infrastructure stock gained as much as 3.96 per cent to Rs 211.95 on the Bombay Stock Exchange (BSE). Stocks of Sadbhav Engineering, Ashoka Buildcon and GMR Infra also gained.
Shares of Public Sector Banks such as State Bank of India (SBI), Bank of Baroda (BoB) and Punjab National Bank (PNB) pared all its losses to gain up to 8 per cent.
The decision announced in the 2016-17 Budget speech by Finance Minister Arun Jaitley also comes against the backdrop of demand from various stakeholders who have been seeking higher foreign direct investment (FDI) in stock bourses.





