Pivotals Spurt On Hopes Of Market Reforms, Better Budget

The new account trading began on an optimistic note on the Bombay Stock Exchange yesterday with the Sensex spurting by 58.30 points to 3580.29 following a spurt in blue chip companies.

The pre-budget rally has lifted the index by over 150 points and the speculators have played a key role in bringing the index to the current level. The BSE-100 also registered gains of 23.72 points at 1555.39. The BSE-200 and Dollex were quoted at 345.04 and 160.02.

The sentiment has changed for better on hopes that the government would take serious view of present state of the capital market and send some positive signals for regaining the confidence of general investors. The main concern is that there is no fresh inflow of investible funds from retail investors because of the protracted bear-phase. The foreign investors were the lone buyers but their buying was selective.

 

The bourses have pinned their hopes on Budget and its contents would determine the future direction. Brokers felt that the reforms package to be announced by the government would be market friendly and the Budget would touch on the subjects like dividend tax and MAT.

The FIIs net investments was Rs 14 crore on February 14. The days smart gainers include BSES, SBI, Bajaj Auto, Colgate, Dr Reddy, HPCL, Indian Rayon, L&T, Castrol, IPCL and Brooke Bond. Gains in other forward shares were small to moderate. There was some improvement in business volumes and the BSE recorded a turnover of Rs 696.45 crore.

SBI took the top position in terms of turnover with business volumes of over 249.52 crore followed by RIL (Rs 122.24 crore), ITC (Rs 119.45 crore),

Tisco (Rs 49.73 crore) and BSES (Rs 25.15 crore).

The other active scrips were MTNL, Telco, IPCL and L&T.