Sensex gains 169 pts on vote-on-account hopes February 14, 2009
Posted by dhirendra1972 in Constant Hopes, Global recession, Growth Boosting Policy, Interim Budget, Sectors, Though expectations, Trading Volumes, Vigilant Outlook.Tags: Airline Sector, Automobile Sector, Brokers, Bugets, Equity, Expectations, Global Cues, Growth, Hopes, Housing Sector, Key Indices, Market Source, Pharma Shares, Policy, Recession, Shares, trading, Turnover, Vigilant
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Good morning friends. Tax concession were expected by many investors with reference to housing sector, automobile sector, airline sector, price reduction and many other export-oriented sector.
Constant hopes of growth boosting policy announcements in the upcoming vote-on-account , lifted equity benchmarks close to 2% on Friday. Key indices have risen 3.5% during the week. Though expectations are running high, brokers do not expect a huge sell-off if the vote-on-account fails to deliver on expected lines.
The Sensex closed at 9634.74, up 169 points, or 1.7%, and the 50-share Nifty index climbed 55 points, or 1.9%, to close at 2948.35. Trading volumes were low, underscoring the vigilant outlook among market participants. Combined traded turnover on both the exchanges was around Rs 40,000 crore, the same as the previous day’s turnover.
“The market is expecting the government to announce the third phase of the fiscal package in the interim budget. There could be quite a few sector-specific packages; the finance ministry will focus on sectors that are severely impacted by the economic downturn.”
“If the actual budget fails to excite investors, the market may, at the most, correct 4-5 % from current levels. After that, global cues will decide the trend.”
According to market sources, investors are expecting tax concessions in the housing sector, excise rebate and easy loans for the automobile sector, extension of software tax benefits, raised FDI ceiling in the airline sector, price reduction in steel, a 2% cut in corporate tax and lavish subsidies for textile, media and other export-oriented sectors.
The steel, auto and textiles sectors are facing maximum downfall in demand due to global recession. Demand of steel and auto has fallen 18% and 4% during the third quarter.
Of the 2,531 shares traded on BSE, 1,484 scraps advanced whereas 947 declined and 100 remained unchanged . M&M , Reliance Communication , ACC and Tata Steel gained in the range of 4-7 % while key pharma share like Sun Pharma and Ranbaxy figured among the laggards.
Reference: economic times
