The stock markets gave a resounding thumbs up to finance minister YashwantSinha's dream budget on Wednesday. The benchmark indices jumped by more thanfour per cent even as the bourses witnessed some profit taking duringmid-session. But net-net, the bourses closed sharply higher at the end ofthe day's trading on the back of a slew of sops the finance minister gave tothe markets in a Budget clearly aimed at kickstarting growth. The BombayStock Exchange (BSE)'s sensex surged by 177 points while the S&P CNX Niftyjumped by 61 points.The markets have wholeheartedly welcomed the Budget by terming it a ``dreamBudget'' of the FM as he has successfully contained the fiscal deficit tothe budgeted level of 5.1 per cent despite shortfall in divestment proceedsand natural calamities like the devastating earthquake of Gujarat.
With the markets fearing earlier that the minister will slap scores of harshmeasures, the final pronouncements in the budget proved to be excellent newsfor the markets which promptly launched an unbridled bull run, as mostpivotals reached for the sky and hitting the 16 per cent upper circuits.
"Given the various constraints the FM had, the reduction in dividend tax andabolition of corporate surcharge will give the necessary boost to thecapital market,'' said MG Damani, CMD of Central Depository Services (India)Ltd. The Sensex opened in positive territory at 4070 but slipped to negativezone before the FM began his budget speech, to 4056.40 level for a briefperiod but began its upward march as soon as the budgetary proposals startedtrickling into the market.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
