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After swinging 768 points intra-day, the BSE Sensex closed in the green, as investors and analysts digested the contours of Finance Minister Arun Jaitley’s Budget proposals.
The market jumped momentarily when he announced a cut in corporate tax rates but could not sustain the gains after he clarified immediately that the cut would be over a four-year period.
After changing direction over a dozen times, keeping traders on edge, the S&P BSE Sensex closed 0.5 per cent higher at 29,361.50. The NSE Nifty rose 57.25 points to close at 8,901.85.
A Deutsche Bank Research report said: “As expected, the FY15-16 Budget maintained the government’s push toward supply side reforms, a business-friendly tax environment, and infrastructure spending boost, while slightly relaxing the deficit reduction plan.”
Jayant Manglik, President-Retail distribution, Religare Securities, said equity markets traded with extreme volatility but managed to end with gains of nearly a per cent. Amid volatility, sectoral indices closed mixed, with banking outshining most of the others by a strong margin.
“The way markets closed on Saturday, the possibility of a further rise is quite high from the current level but a lot depends on the reaction from foreign investors after weekend,” he added.
Key investors said the market is expected to remain volatile in the near term, as it has already discounted the budget announcements, which did not surprise them.
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