Dubai: Indian stocks moved between gains and losses on Saturday and positive sentiment in banks were offset by weakness in consumer durables even as the Modi government presented its first budget.

The benchmark S&P BSE Sensex ended 0.48 per cent higher at 29,361.50, after fluctuating in the range of 28,882.02-29,560.32, extending the gains in the previous session.

Axis Bank ended 8.15 per cent higher at 613.40 rupees, while Bajaj Auto ended 0.56 per cent higher at 2,162.40. ITC ended 8.27 per cent lower at 361.25 rupees after the government raised the tax on cigarettes by at least 15 per cent. Bharat Heavy Electricals Ltd ended 3.21 per cent lower at 262.15 rupees.

“We wanted some kind of solution without increasing tax burden on taxpayers and accrue some more capital and fund fiscal deficit. We also saw that all leading indicators like growth, inflation fiscal deficit are very much in control, so prima facie it was a good budget,” Yogesh Mehta, assistant vice-president, Motilal Oswal, an Indian brokerage, told Gulf News.

Arun Jaitley, the country’s finance minister, who presented the government’s first full year budget, stressed growth aided by a slowed pace of fiscal deficit cuts and a raft of tax measures to put private domestic and foreign capital to work.

“The real flavour to the market would come post the analysis and reading between the lines, The budget as far as layman or industry is concerned. everybody is happy,” said Mehta.

The budget proposed a cheaper insurance scheme for the poor, along with an increase in the deduction limit for health insurance premium despite keeping the income slabs and the tax unchanged. The government proposed to cut the rate of corporate tax to 25 per cent from the existing 30 per cent over the next four years.

The CNX Nifty ended 0.65 per cent higher at 8,901.44. Cement maker ACC ended 0.28 per cent higher at 1,678.10. Another cement maker Ambuja Cements ended 1.08 per cent higher at 271.60.

Bull trend

“The market would remain in bull trend continuously because the sector like public sector banks and metals, which are not performing currently would perform,” said Mehta.

China’s move to cut interest rates could also have a positive impact on Indian stocks.

China’s central bank cut benchmark interest rates for the second time in three months as disinflation gives room to step up support for the nation’s sluggish economy.

The one-year deposit rate will be lowered by 25 basis points to 2.5 per cent and the one-year lending rate will drop 25 points to 5.35 per cent on March 1

“It’s a good time to have new highs in Indian stock markets like the US equities,” said Mehta.