Market reacts cautiously to Economic Survey: Analysts

The stock market reacted cautiously to the Economic Survey, which was tabled in Parliament today, and volatility is likely to persist till the announcement of the Budget, analysts has said.     

Marketmen feel the reformist wishlist prescription for the government for next five years though presents a good road-map for future growth but is hard to implement.     

The Economic Survey today mooted the idea of doing away with cess, surcharges on taxes and initiating reforms in petrol pricing and financial sector, besides recommending a disinvestment target of Rs 25,000 crore annually.     

"The reforms prescribed are not easy, but have a vision. It is too early to expect that everything can be done," SMC Global Vice President Rajesh Jain said.     

The Bombay Stock Exchange benchmark Sensex surged by 119 points to a high of 14,764.35 points immediately after the tabling of the Survey, but lost momentum thereafter and plunged to a day's low.     

Sensex fell to a low of 14,568.12 points, down by 77.35 points, within 30 minutes of the presentation of the survey.     

"The market is nervous and that is why the volatility is high. People are waiting for the Budget to enter the market as it would be great if we can implement at least 20 per cent of the prescription," Kejriwal Research and Investment Services Head Arun Kejriwal said.