The key equity benchmarks surged in early afternoon trade after the Budget for 2023-24 was laid down in the Parliament by the Union Finance Minister. The Nifty traded hovered near the 17,850 mark.

At 12:23 IST, the barometer index, the S&P BSE Sensex, was up 657.66 points or 1.10% to 60,207.56. The Nifty 50 index added 179.45 points or 1.02% to 17,841.60.

In the broader market, the S&P BSE Mid-Cap index gained 1.02% while the S&P BSE Small-Cap index advanced 1%.

The market breadth was strong. On the BSE, 2234 shares rose and 1139 shares fell. A total of 157 shares were unchanged.

Union Budget 2023-24:

Finance Minister Nirmala Sitharaman presented the Budget 2023 today. This was the final full-fledged budget of the Narendra Modi government before the general election next year.

FM Sitharaman said fiscal deficit for 2023-24 is estimated at 5.9%. FY23 fiscal deficit is revised at 6.4% of GDP.

I reiterate my intention to bring the fiscal deficit below 4.5% of GDP by 2025-26, FM Nirmala Sitharaman said.

FY24 gross borrowings is set at Rs 15.4 lakh crore. Net market borrowings budgeted at 11.8 lakh crore in FY24, says Finance Minister.

Sitharaman in her Budget speech today said that India's FY23 GDP growth is estimated at 7%.

The government is increasing capital investment outlay by 33% to Rs 10 lakh crore, which would be 3.3% of GDP. This is highest ever capital outlay by India.

The government has announced capital outlay of Rs 2.40 lakh crore for railways, an increase of 9x over FY14.

The outlay for PM Awaas Yojana is being enhanced by 66% to over Rs 79,000 crore.

50 additional airports, heliports, water aerodromes, advanced landing zones will be revitalised. Cities will be incentivised to improve creditworthiness for municipal bonds. About 100 critical transport infra projects for steel, ports, fertiliser, coal, foodgrain sectors have been identified with an investment of Rs 75,000 crore including Rs 15,000 crore from private sources.

The government will extend 50-year interest free loan to State governments for one more year, FM Sitharaman said.

The government has announced Rs 35,000 crore priority capital for the energy transition. Battery storage will get viability gap funding.

The government has allocated Rs 19,700 crore to the National Hydrogen Mission. The objective is to reach hydrogen production capacity of 5 metric million tonnes by 2030.

The government will launch Pradhan Mantri Kaushal Vikas Yojana 4.0.

A one-stop solution for reconciliation & updating of identity and address of individuals maintained by various govt agencies, regulators and regulated entities will be established using DigiLocker service and Aadhaar as foundational identity.

For business establishments required to have Permanent Account Number, the PAN will be used as a common identifier for all Digital Systems of specified government agencies.

FM said 50 tourist destinations will be selected through challenge mode to be developed as a whole package for domestic and international tourism. States will be encouraged to set a 'Unity Mall' in State capital or the most popular tourist destination in the state for the promotion and sale of 'One District, One product' and GI products and other handicraft.

Rebate limit on personal income tax increased from Rs 5 lakhs to Rs 7 lakhs. The rebate will be only for those in the new tax regime.

Number of slabs reduced to 5 and tax exemption limit raised to Rs 3 lakh in new tax regime. Tax rates reduced for each slab with the highest of 30% for Rs 15 lakhs and above.

Salaried persons with income of Rs 15.5 lakhs or more will benefit by Rs 52,500 due to standard deduction.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, slumped 7.42% to 15.62. The Nifty 23 February 2023 futures were trading at 17,964.10, at a premium of 122.5 points as compared with the spot at 17,841.60.

The Nifty option chain for the 23 February 2023 expiry showed maximum Call OI of 25.8 lakh contracts at the 18,000 strike price. Maximum Put OI of 30.7 lakh contracts were seen at 17,500 strike price.

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