Tuesday, March 1, 2011

Stock markets cheer the Budget, Sensex up 122 pts

NEW DELHI: Investors cheered the Budget 2011-12 today pushing up the sensex nearly 600 points before profit-booking erased gains as the BSE benchmark index closed at over 17,823, up about 122 points.

Markets welcomed the budgetary proposals to reduce surcharge on corporate tax to 5 per cent, push reforms and contain inflation, with the Bombay Stock Exchange 30-stock barometer closed with 122.49 points up, at 17,823.40.

The broad-based National Stock Exchange's Nifty also saw an upswing and moved up 29.70 points to 5,333.25, after touching the day's high of 5,477.

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

He said a moderate hike in the MAT will not have any impact on the market.

A Delhi-based BSE broker Rajiv Malik said the proposal to issue Rs 30,000 crore bonds for infrastructure development will bring in more liquidity in the equity markets.

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 upsurge was supported by stocks in FMCG, PSU, Realty, Capital Goods and refinery sectors.

toi

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