Budget 2018-19
Dollar closed at 64.0150 against its opening at 63.6400.Dollar ends up on likely FII outflows after FY19 Union Budget.Dollar opened higher tracking firm greenback after the Federal Reserve policy statement indicated US inflation to rise in 2018 and hinted at more than three rate increases this year. The greenback gained grounds after the Federal Open Market Committee signalled greater confidence in officials' upbeat economic outlook. The statement hinted that Fed might favour more than three rate increases this year because it offered slightly more conviction that inflation would move higher in 2018.
Federal Reserve Chairwoman Janet Yellen concluded her final policy meeting by keeping interest rates steady and leaving it to her successor to decide whether to lift them more quickly to prevent the economy from overheating. The Fed held its benchmark short-term interest rate steady in a range between 1.25% and 1.5% and offered nothing to dispel market expectations that it would deliver its next rate increase in March. Fed Governor Jerome Powell, is scheduled to be sworn in as chairman on Monday.
Indian shares are expected to open flat tracking positive cues from global markets while investors will focus the Union Budget which will set the course for future plan of action.
BSE Sensex closed lower by 58.36 points at 35,906.66, while the Nifty 50 fell 10.80 points to close at 11,016.90.
Highlights of Budget 2018-19
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India is already the 7th largest economy in the world, and will become the 5th largest economy very soon .
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Government is ensuring benefits are reaching eligible beneficiaries directly Our emphasis is on generating higher income for farmers.
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Minimum support price (MSP) of all crops to be increased to at least 1.5 times of production cost.
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Swachh Bharat Abhiyan has benefited the poor; 60,000,000 toilets built so far.
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Government to invest 1 trillion rupees in development of premium education infrastructure over next four years.
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Government to soon announce measures to address bad loans of small and medium enterprises
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Government to reduce corporate tax to 25 percent for companies who have reported turnover of up to 2.5 billion rupees
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71.5 billion rupees allocated to textile sector
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No change in personal income tax structure
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Listed entities to be taxed under long term capital gains tax
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Tax on distributed income on equity oriented mutual funds to be 10 percent
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Long term capital gains above 100,000 rupees to be taxed at 10 percent.
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Health and education cess raised to 4 percent.
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Government to reduce corporate tax to 25 percent for companies who have reported turnover of up to 2.5 billion rupees