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Wednesday, Jul 07, 2004

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Sensex up 85 points

Our Bureau

Mumbai , July 6

THE unexpectedly tame Railway Budget presented by Railway Minister, Mr Laloo Prasad Yadav, appears to have reassured investors that the new Government would hold a reformist course for the economy even though the coalition's Leftist supporters may not be entirely happy.

That investors' hopes have lifted was clear when major stock indices rose sharply after Mr Yadav announced that there will be no increase in passenger fares or freight rates. Stocks of steel and cement companies, which would have been hurt by a freight rate hike, rose almost immediately.

The 30-share Sensex of the BSE rose 1.75 per cent or nearly 85 points to close at 4,928.59. The broader, 50-share S&P CNX Nifty rose over 2 per cent to 1,558.25 from 1,526.85, where it ended on Monday.

A stock dealer with a private bank said even though prices improved, trading volumes remained low. Better prices helped boost the BSEPSU index nearly 2.5 per cent to 3,105.34 and the BSE Bankex 1.83 per cent to 2,423.48.

An institutional dealer said the market's movements were surprising. He said while select stocks such as Tata Power, Biocon and Hindalco showed good delivery volumes, most others were thinly traded.

Most broking firms are witnessing minimal activity from their clients as investors wait keenly for the Finance Minister, Mr P. Chidambaram, to present the Union Budget on July 8, widely expected to contain enough material to make or mar the stock market in the coming days.

More Stories on : Stock Markets | Stock Markets | Railway Budget

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