Dalal Street pins hope on interim budget

Dalal Street pins hope on interim budget
PTI
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First Published: Sun, Feb 15 2009. 06 13 PM IST
Updated: Sun, Feb 15 2009. 06 13 PM IST
Mumbai: The Dalal Street is likely to rally early next week on widely anticipated stimulating measures for the industry in the interim budget but sustaining the gains would depend on global trends, said analysts.
They said the effects of another stimulus package to boost the economy on the markets would last for a day or two as was the case in the of earlier two such packages. Post the vote-on-account, the market will derive its course from the trends in the global markets, they added.
External affairs minister Pranab Mukherjee, who also holds the finance portfolio, will present the interim budget in Parliament on Monday.
“The pre-budget rally has been good for the last two weeks. There has been no major announcement in the interim Railway budget and investors would now look at the global markets as any dramatic policy change is unlikely,” Ashika Stock Brokers research head Paras Bothra said.
“The market was moving up in anticipation of a positive announcement from the interim budget. If there is a positive development the market would rally, if no positive announcement there will be a sell-off,” Kejriwal Research and Investment Services director Arun Kejriwal said.
The BSE benchmark Sensex gained over 300 points during the past week to end at 9,634.74, up 169 points on Friday.
Trying to fight global slowdown and gearing up for the forthcoming elections, the UPA government’s interim budget is likely to step up expenditure on its flagship programmes, rural development and housing.
The interim budget is also likely to announce short-term measures for exporters reeling under the impact of a global slowdown.
The interim budget is widely anticipated to unveil stimulating measures for the industry. It is expected to focus on labour-intensive and export-oriented sectors among others.
“There can be some good news for the textile, gems and jewellery sector. In the past vote-on-accounts, there has been no major policy change and this time it is not going to be any exception,” Bothra added.
Meanwhile, the foreign institutional investors had been net purchasers in equities so far in February and has bought equities valued at worth Rs412.25 crore during the past week.
However, they have been net sellers to the tune of Rs3,922.40 crore in equities in 2009 so far.
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First Published: Sun, Feb 15 2009. 06 13 PM IST