Tuesday, June 2, 1998
Market drowns in speculation as traders fail to absorb budget positives
Dreams on which the market went up 107 points in the day came crashing as Yashwant Sinha unveiled his budget. The Sensex fell 151 points in post-budget trading as there was no buy-back of shares but an added disclosure of PAN for every trade over Rs 50,000 sent panic waves among brokers.
NRI funds seen flowing into small companies
Several issues that have a direct bearing on the capital markets have been covered in the budget. The current provisions are likely to give a boost to NRI investments. This is expected to be a major area for investment flow. A minimum of Rs 500 crore can be expected to flow in from the 500-member strong NRI Investor Forum. This investment will come into small companies.
Buy-back disappointment dashes market sentiment
Buy-back has yet again proved to be an illusion for the stock markets. As a result, stocks reacted sharply and the 30-share BSE Sensitive Index lost more than 160 points in the post-budget session. Ironically, buyback was the driving force behind the 107-point jump in the Sensex in the pre-budget session.
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