Mumbai, July 10
The much-awaited maiden Budget of the Narendra Modi government failed to meet high investor expectations of big-bang reforms, with the benchmark Sensex today ending 72 points down to nearly two-week low level after witnessing a roller-coaster ride.

The Budget, which is the first official road map of the Modi-led dispensation for fiscal consolidation and growth strategies, committed to medium-term consolidation and announced measures to attract capital inflows and boost investments.

However, experts said the issue on unpaid subsidy bills remains unresolved, which disappointed markets that embarked on a record-setting spree after Modi-led NDA assumed power at the Centre.

After Finance Minister Arun Jaitley began reading his Budget speech, the Sensex started declining and tumbled over 300 points at noon. Markets, however, recouped losses as he completed the speech and the BSE 30-share index soared over 475 points to hit day's high of 25,920.46.

However, the Sensex in late afternoon erased all gains and settled at 25,372.75 — down 72.06 points or 0.28% — on profit-booking. Intra-day, it moved in a wide range of over 800 points.

Today's close is the lowest since 25,099.92 (June 27).

"Budget is a mixed bag. The government did not use the opportunity to come clean on subsidies, which is a disappointment," said Nomura analysts Sonal Varma and Aman Mohunta.

The wide-based 50-issue CNX Nifty of the NSE also eased further by 17.25 points, or 0.23%, to end at 7,567.75. Shares from consumer durable, auto, IT and banking suffered losses while from Realty, Power were in demand.

"As expected, the new government didn't come up with any big-bang changes to what was introduced in the interim budget by UPA government. However, markets are disappointed on the fiscal consolidation front. The Budget didn't speak anything about the rationalisation of subsidies which was widely expected by most market players," said Rakesh Goyal, senior vice-president, Bonanza Portfolio.

Foreign Portfolio investors (FPIs) bought shares worth a net Rs 645.19 crore yesterday, as per provisional data from stock exchanges.

Asian stocks ended mixed amid Federal Reserve indication that it was not in a rush to end quantitative easing and begin hiking rates. Key benchmark indices in China, Singapore and Japan declined by 0.01% to 0.56% while in Hong Kong, South Korea and Taiwan moved up by 0.12% to 0.27%. — PTI

New Delhi, July 10
Industry has welcomed the maiden Budget of the Modi government as reformist which will create jobs and growth. The Budget presented by the new government contains a comprehensive package for economic revival and creation of jobs, said Ajay Shriram, president, CII.

"Budget 2014-15 provides an extensive road map for all sectors of the economy and would lay a strong and stable foundation for boosting savings and investments. This Budget is directional and aimed at the medium term," he said.

Soon Kwon, managing director, LG India, said the Budget has definitely created an overall positive sentiment.

"It is realistic and growth oriented. Announcement of investment allowance is a boost for manufacturing sector. The Budget should also bring a smile to the consumers with the increased tax exemptions that will leave them with extra disposable income and prospects to invest in white goods", he said.

GVK Reddy, founder chairman & managing director, GVK Power and Infrastructure, said the Budget's specific thrust on the infrastructure sector is a welcome move with steps like assurance to ensure adequate supply of coal for thermal projects, tax holiday for the power sector, allocation of over Rs 37,000 crore for roads and focus on developing airports under PPP for Tier I and II cities.

Sunil Duggal, CEO, Dabur India, said the focus has been on empowering the middle class and particularly the emerging middle class, besides taking care of their health. The hike in income-tax exemption limit and the investment limit under Section 80C would put more money and more savings in the hands of the common man and fuel consumerism.

N Chandrasekaran, CEO & managing director, Tata Consultancy Services, said the Finance Minister's maiden Budget signals, both in sentiment and policy, the new government's intention to drive the next generation of reforms and swiftly put India on a higher GDP growth path. He said it has provided key sectors like agriculture, manufacturing and infrastructure with impetus and incentives to pursue growth.

Bangalore, July 10
Nasscom, the advocacy body of Indian IT and BPO industry, has welcomed “the focus on the ICT (Information and Communication Technology) sector in the Union Budget proposals”. It termed the proposals as “pragmatic and directional”.

R Chandrashekhar, president, Nasscom, said, “The announcements on a pan-India digital initiative, funding for startups, district-level incubator network and leveraging technology for good governance are welcome steps. These measures along with the initiatives on skilling, smart cities and ease of business, reflect the thrust on role of technology in Budget 2014”.

Mumbai, July 10
Moving in tandem with equities, the rupee today tumbled 44 paise, posting its biggest drop in nearly a month, to end at 60.19 against the dollar on a day the Narendra Modi-led government presented its maiden Budget.

A firm dollar overseas and demand for the US currency from importers weighed on the rupee, dealers said.

At the Interbank Foreign Exchange (Forex) market, the domestic unit commenced strong at 59.63 and improved further to a high of 59.57 on sustained dollar selling by exporters.

However, late profit-booking in local stocks and fresh dollar demand from importers pulled it down to a low of 60.22 before settling at an almost three-week low of 60.19.

"Rupee was seen gaining initially taking cues from the local stock markets after the Finance Minister's proclamation that government has contemplated to keep the fiscal deficit target of 4.1% of GDP unchanged. Later, however, rupee was seen paring its gains as the market participants were seen booking profits on their positions immediately after Budget was unveiled," said Abhishek Goenka, Founder & CEO, India Forex Advisors. — PTI

Mumbai, July 10
The Budget proposal to raise Foreign Direct Investment (FDI) cap in the insurance sector to 49% is a positive step and will increase the capital inflow, say industry experts.

"Its a very positive announcement and we have been expecting it for a long time. This will boost the industry in terms of capital infusion and employment generation.

"The insurance companies were waiting for this relaxation and now this will encourage companies to enter the capital markets," HDFC Life CFO Vibha Padalkar said. The decision will help the new entrants who are cash-starved and struggling for growth.

"The insurance sector is a very cash intensive sector that needs a lot of capital infusion. This decision will help all those new and mid to small companies who are struggling for growth. The industry is likely to see a fund inflow of $10-15 billion conservatively, it might be double of this," she added.

Finance Minister Arun Jaitley, while presenting the Budget for 2014-15, today proposed to increase the composite cap of the insurance sector to 49% from the current level of 26% with full management and control through the FIPB route.

Echoing similar views, Bharti AXA General Insurance CEO Amarnath Ananthanarayanan said the overall direction of increasing FDI is good as it will increase capital investment in the insurance sector. Raising the exemption limit for investment in financial instruments under Section 80C to Rs 1.5 lakh from Rs 1 lakh is also likely to increase investment by the policyholders, he said. — PTI

New Delhi, July 10
Finance Minister Arun Jaitley today raised the disinvestment target for the current fiscal to Rs 58,425 crore.

The target include Rs 43,425 crore from selling stake in PSUs and another Rs 15,000 crore from sale of residual stake in the erstwhile government companies, as per the Budget document.

This is higher than the Rs 51,925 crore PSU stake sale target estimated in the Interim Budget presented in February by the UPA government.

While a 5% stake sale in SAIL is on the cards, the disinvestment department is also looking at 10% stake sale in Coal India.

Also a Cabinet note has been floated for a 5 per cent stake sale in ONGC which could fetch about Rs 17,000 crore to the exchequer.

Besides, another 10.96% stake is likely to be on offer for NHPC and 5% each in PFC and REC.

Besides, the department is also looking at residual stake sale in Hindustan Zinc and Balco.

With stock markets on an upturn and SEBI pushing for minimum 25% public holding in PSUs, the disinvestment department has revised the target upwards. — PTI

Mumbai, July 10
Real estate stocks ended as much as 9% higher after the government today proposed tax incentives for investment instrument REITs.

Shares of DLF advanced by 9.22%, while Prestige Estates Projects rallied 6.86%, HDIL zoomed 5.25% and Indiabulls Real Estate was up 5.04%.

Similarly, Sobha Developers was up 2.73% and Oberoi Realty climbed 1.79% on the BSE.

Following the sharp uptick in these stocks, the BSE realty index ended 4.96%higher at 2,009.72 and was the biggest gainer among the 12 sectoral indices. — PTI