BSE Sensex shares edge higher, after hitting lowest 2013 point on Friday
Indian shares edge higher in countdown ahead of budget
Indian shares edged higher on Monday, marginally recovering after hitting their 2013 lows in the previous session, as recent underperformers such as Larsen & Toubro rose, while DLF gained after an executive told analysts earnings would improve.
Shares are expected to be range-bound until the 2013/14 budget is unveiled on Feb. 28, in a critical test of whether the government will announce a plan to contain the fiscal and current account deficits.
India's finance minister plans to cut the public spending target for fiscal 2013/14 by up to 10 percent from this year's original target, government sources told Reuters, in what would be the most austere budget in recent history as he tries to avert a sovereign credit downgrade.
Such a plan could spark gains in domestic shares. After surging 25.7 percent in 2012, the benchmark BSE index has stalled and is up only 0.38 percent so far this year.
"Earnings season has been not bad but not good either, and now eyes are on budget which has to be responsible as exports are not looking good," G. Chokkalingam, executive director and chief investment officer, Centrum Wealth Management, said.
"You are dependent only on FII money to support current account deficit, so finance minister has to favour markets and economy, there is no other choice," he added.The benchmark BSE index rose 0.17 percent, or 32.93 points, to end at 19,501.08, recovering from its lowest close
Be the first to comment.