On Friday, the stock market opened, fingers crossed. Within minutes of Finance Minister Pranab Mukherjee’s Budget speech, investors knew their day won’t be ruined. They stayed cautious though, until an hour had passed and the minister turned to his tax proposals — springing some surprises.
Mukherjee’s decision to bring big cuts in the tax liability of individual tax payer and roll back excise duty reductions in a calibrated manner was greeted by the market. The Bombay Stock Exchange’s benchmark Sensex rose 415 points to touch an intra-day high of 16,669. It pared some in late trade to close 16,429 — 175 points (1.1 per cent) higher than Thursday.
The Nifty closed with a gain of 1.3 per cent at 4,922 as the Budget came out with positive surprises for the market against the anticipated negative ones.
“Markets have gone over the wall of worry over Budget and the markets had a relief rally today and now they will follow earnings cycle and global cues,” said Aseem Dhru, CEO, HDFC Securities.