Expectations of a growth-oriented budget, to be announced next week, saw indices rise smartly on Friday.Market participants and institutions alike will be watching keenly, and hopes are high of a positive, forward thinking budget.
The benchmark Bombay Stock Exchange (BSE) 30-share Sensitive Index (Sensex) closed 25,962.06, with a gain of 138.31 points or 0.54 per cent. A broader, BSE100 was up by 0.43 per cent.
Meanwhile, the rupee closed at 59.72 to a dollar compared to 59.73 on Thursday. While the mid-cap stocks were up by 0.58 per cent, the small cap stocks surged by 0.85 per cent.
On the National Stock Exchange, the 50-share nifty gained 36.80 points or 0.48 per cent to close at 7,751.60.
“Market is looking pretty interesting ahead of budget. The Prime Minister is also indicating privatisation of the Railways. It is a big time opportunity for Indian industries and entrepreneurs,” said Deven Choksey, Managing Director, K.R. Choksey Share and Securities.
“We believe this budget will be largely growth-oriented,” said Mr. Choksey, adding that, “it will provide fiscal consolidation and the roadmap thereon.”
“The market is expected to remain in the positive direction, and medium-term to long-term, the growth will be at a faster rate now,” Mr. Choksey added.
“The market is expected to be buoyant after a possible path-breaking budget. The government has already taken some tough decisions and this policy tenor is expected to be maintained in the budget as well,” said India Equity Strategy report of Deutsche Bank. FII flows continued unabated in June with foreign investors pumping into equity and debt. Equity inflows into India were higher than most Asian emerging market peers, except for Taiwan.
“Several investors are awaiting budget announcements before making capital commitment to India. We believe the Finance Minister will present a path-breaking budget, encouraging FII investors to continue investing in India,” the report added.
