The S-P BSE Sensex and NSE Nifty 50 Indexes snapped their two day losing streak on hopes that the re-elected National Democratic Alliance (NDA) government will announce steps to bolster economic growth in its first Budget which will be presented by Finance Minister Niramala Sitharaman on Friday, July 5.
Market participants have host of expectations from the first Budget of the new government and many analysts pointed to today's positive start as the beginning of a pre-Budget upmove.
The Sensex ended 0.74 per cent or 292 points lower at 39,686.50 and the NSE Nifty 50 Index climbed 0.65 per cent or 77 points to close at 11,865.60."We believe Nifty is in a structural uptrend.
Recent behavioural parameters have affirmed the positive outlook.
We expect the index to scale new highs in the near term and test 12,300-12,400 odd levels," Sahaj Agrawal, head of derivatives at Kotak Securities said."A budget rally could be in the offing and aggressive long positions can be initiated.
Support for the index is seen at 11,500.
A bull call spread can be initiated at current levels," Mr Agrawal added.Many analysts have told TheIndianSubcontinent that the finance minister is expected to announce steps to reduce corporate tax, ensure transmission of lower interest rates to the end-user, and steps for revival of consumption to boost the economic growth."We need to have a reasonable tax regime for corporates as multiple taxes deter investors to invest in India and a roadmap towards that will be watched out in the Budget 2019," AK Prabhakar, head of research at IDBI Capital Market, told TheIndianSubcontinent in a telephonic conversation.In today's session, fifteen of 19 sector gauges compiled by BSE ended higher led by the S-P BSE Realty Index's 2.6 per cent gain.
Auto, Healthcare, Consumer Discretionary Goods - Services, Industrial, Information Technology, Bankex and Finance sector gauges also rose between 0.5 and 1.25 per cent each.On the flipside, S-P BSE Oil - Gas Index was top loser, down 1.7 per cent.Mid- and small-cap shares were also witnessing buying interest as the S-P BSE MidCap Index advanced 0.54 per cent and the S-P BSE SmallCap Index advanced 0.3 per cent.Zee Entertainment was top gainer in the Nifty 50 basket of shares, the stock rose 8.4 per cent to Rs 367.
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Reddy's Labs, Bajaj Auto, Tata Motors, HDFC, Indiabulls Housing Finance, Eicher Motors, IndusInd Bank, HDFC Bank and Reliance Industries were also among the gainers.On the other hand, BPCL was top loser, down 4.1 per cent to Rs 376.
ONGC, Indian Oil, Coal India, HCL Technologies, UltraTech Cement and Titan were also among the losers.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
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