TT Epaper
The Telegraph
TT Photogallery
 
CIMA Gallary

Sensex atop Mount 26K

Mumbai, July 7: The BSE Sensex today closed above the 26000-mark for the first time on expectations that finance minister Arun Jaitley would announce growth-oriented measures in the budget on Thursday.

Both the Sensex and the Nifty climbed new peaks despite talks that the finance minister may refrain from giving direct sops to the stock markets in his maiden budget on July 10.

The market is also awaiting the fiscal deficit numbers for 2014-15. Some brokerages expect Jaitley to announce a fiscal deficit between 4.3 per cent and 4.5 per cent of the gross domestic product for this fiscal. He is also expected to present a road map to bring down fiscal deficit over the next five years.

Opening on an optimistic mood, the 30-share benchmark index breached the 26000-mark at the very outset.

It later hit an intra-day record high of 26123.55, before closing 138.02 points, or 0.53 per cent, higher at a new peak of 26100.08. The index surpassed its previous closing high of 25962.06 on Friday when it had gained 138.31 points.

The 50-scrip CNX Nifty of the National Stock Exchange rose 35.55 points, or 0.46 per cent, to end at a new closing peak of 7787.15 after hitting an intra-day high of 7792.

Investors are expecting the finance minister to announce reform measures to increase foreign direct investment in the country and a clear road map to lower the subsidy burden.

“The equity markets are not expecting any relief in the form of a lower securities transaction tax. However, its attention is largely towards the fiscal stance of Jaitley and other reform measures that he may announce. Though one cannot rule out a correction after the budget, stocks could soon resume their upward journey,” an analyst with a foreign brokerage said.

Meanwhile, the markets will also keenly watch the earnings season which will begin with Infosys announcing its first-quarter results on July 11. The railway budget will be presented tomorrow, while the balance of trade data will be announced soon.

“The strong mandate in the elections and the recent hike in railway fares and freight rates have raised expectations about several reforms announcements in the budget. Markets are hoping for a forward-thinking and an achievable budget. We expect the finance minister to lay down the new government’s vision for the economy over the next five years,’’ a note from Kotak Securities said.

 
 
" "