The likelihood of a pro-reform and growth-oriented Budget being presented by Finance Minister Arun Jaitley on July 10 saw the benchmark indices close at all-time highs. The Nifty closed at 7,725, up 1.18 per cent (90 points) while the Sensex closed 1.27 per cent higher (325 points), at 25,841.Wednesday was the fourth straight session that the indices closed in the green.

Dipen Shah, Head – Private Client Group Research, Kotak Securities, said: “The rise in rail fares and freight has raised hopes of a reforms-oriented Budget. We see the progress of the monsoon and the Budget to be the two most important triggers for the market.

“We feel that, a progressive Budget as well as other reform initiatives will lead to the continued out-performance of Indian indices vis-à-vis emerging market peers. However, if there is a continued rise in crude prices, it will be a negative from the current account deficit, rupee and inflation perspectives.”

While FIIs were net buyers of equities worth ₹1,291 crore, domestic institutional investors were net sellers (₹408 crore).

“The market is going to hold itself until the Budget. Post that, it will depend on what announcements are made to enable capital inflows in the form of FDI and FII. Currently, on a net basis, FIIs continue to be bullish on India,” said Arun Kejriwal, Founder, KRIS Research.

Retail investors also sold equities worth ₹140 crore in the net.

“There is already a feeling of being left out of this bull-run among retail investors, and it is getting stronger,” said Ashish Choudhary, a retail investor.

Barring IT and realty all sectoral indices closed in the green.

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