Investors upbeat on Budget

Written by fe Bureau | Mumbai | Updated: Jun 30 2009, 04:44am hrs
Indian equity markets, which closed with some smart gains on Friday, might continue it upward rally in the markets ahead of crucial presentation of Union Budget 2009, on July 6. Apart from that, domestic markets are likely to track global cues for the direction in the coming week.

Dealers in the markets also added that, investors will be also looking at the annual economic survey which will be presented on July 2, a day ahead of the Rail Budget on July 3. Despite witnessing huge volatility last week domestic markets closed the day above the dotted line.

On Friday, last trading day of previous week, the 30-share Sensex of Bombay Stock Exchange (BSE) added 419.02 points or 2.92% to close the day at 14,764.64 points. The broader S&P CNX Nifty of National Stock Exchange (NSE) was up by 133.65 points or 3.15% to end the day at 4,375.50 points.

Amitabh Chakraborty, president equities at Religare Securities said, There was some fear of late monsoon in the markets. However, it seems that fear is slowly fading away as we witnessed some rainfall in the several parts of the country last week. Apart from that, investors have lot of expectation from the Budget, that it might be an investor friendly Budget, but nothing can be said before July 6.

After the last results of general elections, several dealers are hoping that the new government will provide push on the infrastructure sector and drive economic reforms to boost growth.

I think we might witness an upward rally in the coming days, but if Budget does not meet the expectation of investors, than markets is likely to see huge downward correction. But I dont think it will make much impact as, many investors are still waiting to enter the markets, after a huge correction, added Chakraborty.