Sensex surges 623 points on budget proposals (Roundup)

Tuesday, March 1, 2011

MUMBAI - A benchmark index for Indian equities markets surged 623 points Tuesday, a day after the presentation of the budget for 2011-12, as investor sentiment was particularly boosted by the steps to attract foreign investors, including overseas funds and mutual funds.

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened in the positive at 17,982.28 points, closed at 18,446.50 points, up 3.5 percent or 623.10 points from the previous close at 17,823.40 points.

The benchmark Sensex had gained 122 points in a volatile session Monday.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty soared past 5,500 points mark. The 50-share index climbed 3.54 percent or 189.05 points to 5,522.30 points.

Two days of post budget rally has made investors richer by over Rs.2,33,500 crore.

There was an all-round buying interest in the market as all the sectoral indices closed in the positive, led by a sharp rally in auto and banking scrips.

The BSE midcap index surged 3.20 percent and the BSE smallcap index closed 2.38 percent higher.

The BSE auto index soared nearly six percent and the Bankex closed 4.35 percent higher.

Auto stocks surged after Finance Minsiter Pranab Mukherjee kept excise duties unchanged in his budget presented in parliament Monday.

Mahindra and Mahindra surged 8.36 percent to Rs.665.45. The country’s largest car maker Maruti Suzuki soared 7.14 percent to Rs.1,292.90. Tata Motors rose 5.42 percent to Rs.1,140.40 and Bajaj Auto advanced 5.25 percent to Rs.1,334.85.

Auto stocks had declined sharply ahead of the budget last week on speculation of a hike excise duties.

Other major gainers on the 30-scrip Sensex were: Jaiprakash Associates, up 7.10 percent to Rs.83; NTPC, up 6.32 percent to Rs.180.80; Hindalco Inds, up 5.78 percent to Rs.212.40 and ICICI Bank, up 5.66 percent to Rs.1,025.95.

All the 30 scrips that constitute the benchmark Sensex closed in the positive territory with 14 of them gaining more than four percent.

Other Asian markets also closed in the green, making up for some of last week’s losses as energy stocks made hay in the wake of rising prices of crude.

The Japanese Nikkei advanced 1.22 percent at 10,754.00 points and the Hong Kong’s Hang Seng ended the day 0.25 percent higher at 23,396.40 points.

China’s Shanghai Composite index closed 0.48 percent higher at 2,918.92 points.

Most European markets were also in the positive. Around mid-day, the French CAC 40 was trading 0.12 percent higher and the German DAX was ruling 0.36 percent up.

However, Britain’s FTSE was trading 0.15 percent lower.

Filed under: Economy

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