Mumbai: Stock markets closed with an upbeat mood on Friday after the Central government announced higher rural spending as well as tax exemptions in the Interim Budget for 2019-20, the last before the General Elections due in the next three months.
The Central government doubled the income tax exemption limit to Rs 5 lakh for individuals. Domestic consumption could increase due to the reduction in taxes. Domestic savings can also go up which are key drivers of a stock market.
The benchmark BSE index Sensex closed 212 points up at 36,469 while the Nifty 50 closed 62 points higher at 10,893.
Among the gainers were Maruti, Hero Motorcorp, Hindustan Lever and Reliance.
While the economy has been growing at over 7.2 per cent annually, rural incomes have plunged in the past year due to low crop prices and rising costs.
The Budget has announced direct income support for farmers with small land holdings.