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Bulls hope Budget to be game changer: Will Nifty hit 8900?

It was a super run up to the Budget as bulls seem excited ahead of FM arun Jaitley’s speech. The Sensex was up 473.47 points or 1.6 percent at 29220.12 and the Nifty ended 160.75 points or 1.8 percent at 8844.60 on Friday.

The News International Team

It is the final few hours before the Modi government presents its first Budget for the full year. Bulls are hoping Budget 2015 to be a game changer for the economy and market.

It was a super run up to the Budget as bulls seem excited ahead of FM arun Jaitley’s speech. The Sensex was up 473.47 points or 1.6 percent at 29220.12 and the Nifty ended 160.75 points or 1.8 percent at 8844.60 on Friday.

PSU banks lead the upmove while HDFC Bank twins, ICICI Bank and Axis Bank were top gainers in the Sensex. Among the losers were ITC, GAIL, Wipro and HUL.

All eyes on the fiscal deficit number. FM Arun Jaitley is expected to remain committed to the path of fiscal consolidation. The government is likely to meet the fiscal deficit target of 4.1 percent in FY15 and aim for 3.6 percent in FY16. Gross market borrowings are likely to inch up to Rs 6.23 lakh crore in FY16.

On the taxation front, it is expected to see a roadmap towards implementation of GST. Capital markets may see a reduction in securities transaction tax. In a boost to financial savings, the FM may increase the limits for deduction under section 80C of the income tax act.

The removal of infra sector from the ambit of MAT is seen as a big positive for infra players. A relaxation in gold import duty from current levels will be positive for Titan. Meanwhile a likely excise duty hike for cigarettes will be a negative for ITC.

Global cues

Greece is running out of options to fund itself despite a four-month bailout extension, raising pressure on Athens to quickly implement reforms it has vocally opposed or default on debt repayments in a matter of weeks.
Euro zone and IMF creditors gave Greece until the end of June to complete the bailout programme and receive the remaining 7.2 billion euros but it will not be allowed any funds until it
Shut out of debt markets and faced with a steep fall in tax revenues, Athens is expected to run out of cash by the middle or end of March. Its finance minister has warned that Greece will struggle to repay creditors starting with a 1.5 billion euro IMF loan repayment due in March.

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