Budget Announcements To Spur Stock Mkt Outlook, Says Vishwas Agarwal
Indian equities, on Friday, maintained an upbeat momentum all through the day, and closed strongly, because of positive global signals, backed by firming trends of Asian markets.
The Sensex closed at 9.634.74, up 168.91 points after touching a high of 9,695.59 and a low of 9,540.60. In contrast, the broad-based NSE Nifty gained 55.30 points at 2,948.35 after hitting a high of 2,969.75 and a low of 2,896.85.
BSE Midcap and Smallcap index rose 1.51% and 0.62% respectively
Railway Minister Lalu Prasad Yadav, presented the interim Rail Budget in Parliament, and said railways have reported a cash surplus at Rs 900 billion during the last 5 years, and he has decided to utilize Rs 700 billion of the surplus to improve rail efficiency.
US Congress has okayed President Barack Obama’s $787 billion stimulus package designed to refresh the battered American financial system through tax cuts and creation of employment.
Stock market analyst, Vishwas Agarwal said that 9,350 is the basic stoploss at the Bombay Stock Exchange (BSE). The next target levels are 9,555, 9786 and 10,111.
Mr. Agarwal also said that UPA government will present interim budget on Monday. The budget may bring some surprise declarations that will stimulate sentiments and overall mood of the stock market.
He feels that some surprising declarations may come by the outgoing administration as this is the final chance for them to attract the Indian people.
He also said that investors should wish for the best and if any positive announcements help stock markets, it is wise to buck the trend as market is not in over bought zone because of lack of confidence.
Agarwal added, “Hence, any positive trigger will attract people to enter in the market to take advantage. So market will get support at higher levels.”