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Sensex claws back, stabilises

business Updated: Jul 07, 2009 22:48 IST
Hindustan Times
Budget shock

A day after plunging 869 points on Budget shock, the benchmark index of the Bombay Stock Exchange, Sensex, on Tuesday gained 127 points in hindsight and low selling pressure.

The projected fiscal deficit of 6.8 per cent and silence on disinvestment plans in Finance Minister Pranab Mukherjee’s budget speech caused the market to tumble intra-day. However, it recovered by the end of the day’s trade as sentiments stabilise and sellers held on to stocks, and the Sensex gained 0.9 per cent to end at 14,170. The national Stock Exchange’s Nifty also closed 0.8 per cent up, or 36 points, at 4,202.

“Markets fell as a knee-jerk reaction on Monday after going up for 7 days on expectations of attractive sops in the Budget,” said Anand Rathi, founder and chairman of Anand Rathi Financial Services. “On Tuesday, nobody was willing to sell at lower levels, this pushed the graph up. Markets become healthy with such corrections. They are in a balanced mood, ranging at reasonable levels with no much pressure to either sell or purchase.”

Auto, FMCG and capital goods gained most while PSU and oil and gas were the major losers. Shares of Reliance Natural Resources Ltd and Suzlon witnessed high number of trades.