Stocks

Markets welcome Budget proposals; FMCG, PSU push Sensex up 122 points

Our Bureau Mumbai | Updated on February 28, 2011 Published on February 28, 2011

Welcoming the budget the BSE Sensex soared over 500 points in the mid-session only to give up most of the gains later on Monday . Photo: Paul Noronha   -  Business Line

Cheering the Budget proposals, the Bombay Stock Exchange benchmark Sensex rose over 120 points during the end of the session today led by FMCG, PSU, realty and capital goods sector stocks amid weak Asian cues.

The Bombay Stock Exchange 30-stock barometer closed with a gain of 122.49 points at 17,823.40. Similarly, the broad-based National Stock Exchange’s Nifty also moved up by 29.70 points to 5,333.25, after touching the day’s high of 5,477.

Volume toppers during the session were SBI, Reliance Infra, Tata Motors, Tata Steel and L&T. Major Sensex gainers were L&T, SBI, ONGC, ITC, Mahindra & Mahindra, Sterlite Industries and Jindal Steel. Tata Motors, Reliance Infra and ICICI Bank were the major losers.

Among the sectoral indices, FMCG was up 4.47 per cent, PSU 2 per cent, realty 1.3 per cent and capital goods 0.6 per cent. Only healthcare was down 0.04 per cent. Of the total 2,933 stocks traded, 1,598 advanced, 1,204 declined and 131 remained unchanged.

PTI adds: Investors cheered the Budget 2011-12 today pushing the Sensex up by nearly 600 points before profit-booking erased the gains. Markets welcomed the budgetary proposals to reduce the surcharge on corporate tax to 5 per cent, push reforms and contain inflation.

Besides, the market sentiment turned bullish on proposals allowing foreign funds to invest individually in domestic mutual funds, paving the way for increased participation in the capital markets.

“The cut in surcharge on corporate tax and proposals to keep up the tempo of disinvestment process, besides raising the income-tax limit, cheered the trading sentiment,” said chartered accountant Mr Tarun Malik of TCM Associates.

He said a moderate hike in MAT will hardly have any impact on the market.

A Delhi-based BSE broker, Mr Rajiv Malik, said the proposal to issue bonds worth Rs 30,000 crore would bring more liquidity into the equity markets.

Furthermore, a reduction in the qualifying age for senior citizens to 60 years from 65 years earlier and a hike in the their tax exemption limit from 2.4 lakh to 2.5 lakh was a double benefit, said senior investor Mr Ratnesh Gupta.

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Published on February 28, 2011
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