Markets budget for fiscal prudence

Written by fe Bureau | Mumbai | Updated: Jul 3 2014, 13:37pm hrs
Benchmark indices scaled new peaks on Wednesday on expectations of a pro-growth Budget on July 10. The BSE benchmark Sensex touched an all-time high of 25,864.53 points, while the NSE Nifty crossed the 7,700-mark for the first time, touching a record high of 7,732.40.

On Wednesday, FIIs bought shares worth $218 million, while domestic institutional investors sold $69 million, according to provisional data on the exchanges. YTD, FIIs have bought shares worth $10.51 billion.

The Sensex finally ended 324.86 points or 1.3% higher at 25,841.21 points, while the broader 50-share Nifty rose 1.2% higher to 7,725.15 points

On Tuesday, while speaking at a function organised by Institute of Chartered Accountants of India, finance minister Arun Jaitley said: India has to make a choice between mindless populism and fiscal prudence... Opportunity to grow comes with challenges.

markets budget

The market rally was led by Sesa Sterlite, which rose 4.4%. NTPC (3%), Bhel (2.7%), HDFC (2.7%) and Maruti (2.2%) were among the major gainers.

Most Asian markets edged higher on Wednesday. The Nikkei 225 rose 0.3%, while the Hang Seng rose the most at 1.5%. Kospi (0.8%), Straits Times (0.7%), Jakarta Composite (0.5%), Shanghai Composite (0.4%) and Taiwan Taiex (0.4%) were the major gainers. Among major European indices, FTSE (0.3%) and DAX (0.1%) were trading in the green, while CAC (-0.1%) was trading marginally in the red, at 7.00 pm IST.