Sensex closes 486 points up after Union Budget 2017 cheers investors
A focus on fiscal discipline and clarity on FPI taxation, as reflected in the Union Budget 2017, came as music to investors’ ears, with the Sensex leaping nearly 486 points on Wednesday to close at an over three-month high of 28,142. Financial and realty stocks powered the show. Markets welcomed the budgetary proposals of infusing Rs10,000 crore in public sector banks and keeping long-term (LTCG) and short-term capital gains tax (STCG) unchanged for the capital market.
Additionally, finance minister Arun Jaitley proposed that category I and II foreign portfolio investors (FPIs) should be exempted from taxation on indirect transfers, which made investors a happy lot. Both key indices Sensex and Nifty reclaimed their key levels of 28,000 and 8,700 for the first time, scoring their biggest single-day gain since October 2016.
BSE Sensex on Wednesday rose 485.68 points, or 1.76%, to 28,141.64 while the Nifty 50 rises 155.10 points, or 1.81%, to 8,716.40 after finance minister Arun Jaitley’s budget speech.