The benchmark Sensex recorded a modest gain on Saturday after witnessing highly volatile trading while the Finance Minister presented the Union budget for 2015-16 in the Parliament.
With huge expectations building up prior to the budget presentation, the market indices were rising high but during almost the middle of the presentation, the indices dipped, but later recovered on expectations that the proposals were likely to result in growth.
A proposal to cut corporate tax also accelerated the buying interest later on bourses though some market participants felt their expectations were not met by the Finance Minister.
The Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) touched a high of 29560.32 and a low of 28882.02 before closing with a gain of 141.38 points or 0.48 per cent at 29361.50.
Among the broader indices, BSE 100 was up by 0.54 per cent and BSE 200 gained 0.50 per cent. Meanwhile, mid-cap stocks and small-cap stocks lost 0.01 per cent and 0.47 per cent respectively.
Bank stocks were the biggest gainers with the index rising by 3.27 per cent followed by healthcare at 2.03 per cent and automobile 1.08 per cent. However, FMCG stocks tumbled by 4.09 per cent followed by consumer durables 2.05 pre cent, power 1.15 per cent and realty 0.90 per cent.
On the National Stock Exchange (NSE), a broader 50-share Nifty closed above the 8900-mark at 8901.85 with a gain of 57.25 points or 0.65 per cent.
“Though it is a fairly well balanced budget, market expectations were really sky rocketing before this day. So I would not be surprised to see a market correction of 5-6 per cent. It is not close to the ‘visionary document’ that people have been talking about. Overall, I would still say it is well balanced one,” said Nitin Jain, CEO – Retail Capital Markets & Global Asset Management – Edelweiss
According to him, the levy on corporate taxation, rationalisation of wealth tax, more allocation towards infrastructure projects are all positives.”
“The budget did not deliver big bang announcements, rather focused on improving procedures and easing/doing business/conditions. On the whole, the budget has not made very high promises but focused more on delivery,” said Anand Rathi, Founder & Chairman, Anand Rathi Financial Services.
However, he said that in the long term markets will react favourably to the budget as there are a number of new steps. Mr. Rathi added: “I expect that the markets should grow by 15 per cent to 20 per cent every year for the next 2-3 years.”
PTI reports
Promise of lower corporate taxes and deferral of GAAR helped the benchmark register a gain of 141.38 points — the first rise on a Budget day in four years. In the previous three sessions on Budget 2014, 2013 and 2012, the Sensex had ended with loss. The government’s projections on growth and commitment on fiscal discipline front supported sentiment.
Among Sensex constituents, Axis Bank topped the gainers by surging 8.1 per cent. The Union Government’s initiative to bring in a comprehensive bankruptcy code for the ease of doing business by 2015-16 is a big welcome step from the banking sector perspective, traders felt.
