Stocks of companies in the Capital Goods business today gained as much as 3 per cent after the Union Budget proposed to allow deductions on investments in plants and machinery.
Sadbhav Engineering rose by 2.57 per cent,while Praj Industries moved up by 1.11 per cent,Jindal Saw (1.35 per cent),BHEL (0.70 per cent),WELCORP (0.94 per cent) and Thermax (0.88 per cent).
The BSE capital goods index was trading at 9,510.62,up 0.05 per cent.
The Budget 2013-14,presented by Finance Minister P Chidambaram,proposed that a company investing Rs 100 crore or more in plant and machinery from April 1,2013 to March 31,2015 will be allowed 15 per cent investment deduction allowance apart from depreciation.
Meanwhile,paring early gains,the BSE benchmark Sensex was quoting at 19,134.38,down 18.03 points at 1240 hrs.