Sensex, Nifty Rise On Hopes Of Economic Reforms Ahead Of Budget 2019
The S&P BSE Sensex and NSE Nifty 50 Indexes snapped their two day losing streak on hopes that the re-elected National Democratic Alliance (NDA) government will announce steps to bolster economic growth in its first Budget which will be presented by Finance Minister Niramala Sitharaman on Friday, July 5. Market participants have host of expectations from the first Budget of the new government and many analysts pointed to today's positive start as the beginning of a pre-Budget upmove. The Sensex ended 0.74 per cent or 292 points lower at 39,686.50 and the NSE Nifty 50 Index climbed 0.65 per cent or 77 points to close at 11,865.60.
"We believe Nifty is in a structural uptrend. Recent behavioural parameters have affirmed the positive outlook. We expect the index to scale new highs in the near term and test 12,300-12,400 odd levels," Sahaj Agrawal, head of derivatives at Kotak Securities said.
"A budget rally could be in the offing and aggressive long positions can be initiated. Support for the index is seen at 11,500. A bull call spread can be initiated at current levels," Mr Agrawal added.
Many analysts have told NDTV that the finance minister is expected to announce steps to reduce corporate tax, ensure transmission of lower interest rates to the end-user, and steps for revival of consumption to boost the economic growth.
"We need to have a reasonable tax regime for corporates as multiple taxes deter investors to invest in India and a roadmap towards that will be watched out in the Budget 2019," AK Prabhakar, head of research at IDBI Capital Market, told NDTV in a telephonic conversation.
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