Budget boosts Sensex 97 pts to month's high; auto, banks gain
The benchmark Sensex jumped 97 points to end at its highest level this month, led by banking, power and auto shares on hopes tax concession proposals announced today in interim budget will boost economic growth.business Updated: Feb 17, 2014 17:32 IST
The benchmark Sensex jumped 97 points to end at its highest level this month, led by banking, power and auto shares on hopes tax concession proposals announced today in interim budget will boost economic growth.
The government's fiscal prudence also supported the day's gains. Brokers said investors cheered finance minister P Chidambaram saying that fiscal deficit for the ongoing financial year will be contained at 4.6%, current account gap will be capped at $45 billion and net borrowing for 2014-15 would be lower than FY'14 revised estimates.
Banking, auto, power and pharma shares attracted good buying support while shares from realty, consumer durable and metal suffered losses on profit-booking. Overall, seven of the twelve BSE sectoral indices rose.
The BSE 30-share Sensex moved most of the day in positive terrain in a range of about 150 points before settling at month's high of 20,464.06, up 97.24 points or 0.48%.
Tata Power, M&M, Dr Reddys and ICICI Bank led 20 gainers in Sensex. Hindalco, Coal India and RIL led the 10 losers.
On GDP growth, Chidambaram today said the economy is more stable than what it was two years ago following several steps taken by the government and that the growth will be higher in the second half of the fiscal.
The 50-share CNX Nifty of the NSE also rose by 24.95 points or 0.41% at 6,073.30.
"Excise duty cuts have been announced for sectors facing the major brunt of the slowdown...positive for the automotive sector, capital and consumer durables goods," said Dinesh Thakkar, chairman and managing director, Angel Broking.
Private bank were the among best performers as duty cuts in vehicles could boost lending business, analysts said.
Naresh Takkar, MD and CEO, ICRA Ltd said: "The absence of major expenditure announcements ahead of elections and focus on fiscal prudence is reassuring."
Asian stocks closed up after China's new credit increased to a record in January, boosting optimism the world's second-largest economy can maintain its growth momentum. Indices in China, Hong Kong, South Korea, Taiwan, Japan and Singapore rose 0.07-1.07% range.