Union Budget 2013: Despite morale booster, markets not impressed

To attract new investment, budget 2013 has enabled investment allowance of 15 percent for companies. This will help savings get a boost.

However, markets are still not impressed and remains flat. Nifty is up only 10 points, Sensex 35 points at this hour.

More money for SME sector, donations to academic institutions for tech to be counted as CSR activity.

Chidambaram says infra debt funds will be encouraged and also notes that tax-free bonds are losing charm. Union Budget 2013 raises down tax-free bonds exemption limit from Rs 30,000 crore to Rs 25,000 crore this year.

Also, there’s higher deduction of Rs 1 lakh for home loan EMIs and an inflation-linked instrument through PO savings from 1 June.

There is something for savers and investors, including the much-loved investment allowance. The measures include: Rajiv Gandhi ESS to be liberalised. Income limit for eligibility raised from Rs 10 lakh to Rs 12 lakh.

New revenue share policy for shale gas, and clearance of exploration in NELP blocks should be a positive for oil sector - but Reliance up only by rupee. Market clearly views all they have heard so far of Chidu’s speech as mere tinkering.

Did they expect too much?