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Market Report

Monday, 29-Feb-2016

NSE

  • The BSE S&P Sensex tanked 660 points from its previous close at one point of the day and then rallied 848 points before ending the day at 23,002.00 today, down -0.66 per cent or 152.30 points. The NSE's Nifty50 plunged -0.61 per cent or 42.70 points to settle at 6,987.05 today. In the broader Nifty50 index the swing was almost 270 points with auto, energy, IT and media stocks as worst performers. Infosys alone contributed 50 per cent of the loss in the 50-stock Nifty50 index.

  • Markets ended lower today amid a volatile trading session after weak global cues offset a Budget that maintained the path to fiscal prudence and growth while higher allocations to the rural sector sought to boost incomes of the poor and the underpriviledged. Metal stocks surged as the government gave a big push to the infrastructure sector in the Budget.

  • The finance minister Arun Jaitley on expected lines presented a budget which focussed on reviving investment cycle to boost growth in Asia's third-largest economy. The budget is unlikely to provide any major boost to markets but it will strengthen our macro picture at a time when there are talks of a global slowdown. Investors should hold onto their bets, and look at adding more on declines. Cyclicals are likely to do better given government's push towards rural and infrastructure sector.

  • Analysts rated the Budget as a mixed bag for several sectors, but the market was nervous as Jaitley announced the implementation of the controversial GAAR regime from April 1, 2017. Throughout the budget presentation, the market remained volatile and it was tough to say where it was headed to. A sharp fall in Asian markets also amid a strong selloff in the Chinese market also put pressure on the domestic market.

  • Experts remained positive on the budget on a long-term basis. Clearly India's big point was its macros and this budget reinforces the strong macros which India is displaying in the rest of the world. So from that point of view, it is a huge positive for the markets also, said Nilesh Shah of Envision Capital.

NIFTY 3-Month

(Data/Charts courtesy NSEI/Yahoo!/iCharts/The Economic Times)