Search the Internet          Tips  Sites: Finance, Investment

Markets ride high on reformist Budget

BS Bureau

Having retraced nearly 400 points from the last peak of 4450 or thereabouts reached in mid-February this year, the benchmark BSE Sensex started on a buoyant note in early trading as it raced ahead to touch 4202.75 with the tech stocks leading the rally. The BSE IT index reflected this with a 38-point gain in the afternoon at 2581 against its close of 2542 Tuesday.

Among other major gainers were Nestle which was up 4.8 per cent at Rs 540, M&M was up 4 per cent at Rs 161 while Infosys and Satyam had gained nearly 4 per cent each. Reliance, another index heavyweight was up Rs 10 at Rs 412 against Tuesday's close of Rs 402.75. It had recorded volumes of 3.2 million in early afternoon.

The software sector had been spared any additional burden and this marketmen expect should act as a booster to the frontline companies. Both Infosys and Wipro saw good volumes in afternoon trades of 388,000 shares and 483,000 shares respectively. Infosys fluctuated in the range of Rs 5552 and Rs 6079 against Tuesday's close of Rs 5695 and Wipro moved in the range of Rs 2230 and Rs 2490 against Tuesday's close of Rs 2369.

Gul Tekchandani, chief investment officer of Sun F&C Mutual Fund said: "It is an excellent Budget as nobody expected so many announcements to be made in the Budget. Most of the measures announced are likely to stimulate growth in the economy and increase consumption demand. The cut in dividend tax is expected to have a positive impact on corporate earnings. The markets have welcomed the Budget and it is time for industry to start performing now.

Aspsi Contractor, Chief Investment Officer, Tata AMC said: "The overall Budget is in line with expectations of the market. Rationalisation of excise and custom duty and abolition of surcharge is a good move. Further, the cut in dividend tax is expected to induce higher inflows in balanced funds now."

The announcement of greater operational freedom to banks and a cut in small saving rate by 1-1.5 per cent saw bank scrips rally strongly led by State Bank of India which gained Rs 13 at Rs 241, up 7.3 per cent. HDFC Bank was ruling at Rs 263, up 4.82 per cent while ICICI Bank was at Rs 167, up 7.71 per cent. UTI Bank has added 5.32 per cent to Rs 37.60. Bank of Baroda has added 6.91 per cent while Bank of India is trading 7.72 per cent higher.

Among major losers were Atlas Copco, Global Telesystems and ITC, which lost over 6 per cent compared to their Tuesday'd closing levels. MTNL was also quoting 4 per cent lower at Rs 151.

Source: Business Standard

ALSO READ:
The Budget 2001-2002 Special
Money

Tell us what you think of this report