The Hindu Business Line : Sensex up 81 on Budget eve; but market has `no big hopes'<br>Economic growth forecast helps sentiment

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Sensex up 81 on Budget eve; but market has `no big hopes'
Economic growth forecast helps sentiment

Our Bureau

Budget boost
Foreign investors continued to pump in funds into the domestic equity markets.
But mutual funds net sellers of Rs 522 crore in February.

Mumbai , Feb. 27

On the eve of the Union Budget, share prices moved up on buying by funds in anticipation of continuation of economic reforms and tax sops for routing small savings into the capital markets, dealers said.

The economic growth rate of 8.1 per cent for the year ending March 2006 projected in the Economic Survey unveiled on Monday also helped to sustain the bullish mood, they said.

The benchmark BSE-30 Sensex rose 81.33 points (0.8 per cent ) to close at 10,282.09. The NSE's S&P CNX Nifty index closed at 3,067.45, up 17.4 points (0.57 per cent) from Friday.

FII buying

Foreign investors continued to pump in funds into the domestic equity markets.

In February alone, net FII purchases stood at over $1.6 billion, according to the numbers filed with SEBI.

The FII investment topped over $10 billion in 2005 calendar.

Mutual funds were net sellers of Rs 522 crore in February.

"The focus of the Budget, I feel, would be on infrastructure development and agriculture.

"This time, the stock markets are entering the Budget day without any big hopes. I expect the stock market momentum to continue.

The markets are Budget neutral this time," said Mr Rajen Shah, Chief Investment Officer, Angel Broking.

However, another dealer with a domestic fund house said he expects some key decisions in the Budget to encourage small investors to the capital markets through the mutual funds route.

On the BSE, the advances (1,336 stocks) outpaced the declines (1,170), indicating better breadth in the markets.

The broader BSE 100 and BSE 500 indices also stood higher at 5,392.50 (up 38.47 points) and 4,113.14 (up 29.92 points) respectively.

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