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Budget impact: Sensex, Nifty end firm; ITC Bajaj Auto dip 4-5%, banks up


The News International Team
The market showed enthusiasm in first day of trade post Budget proposals presented by Finance Minister Arun Jaitley. Buying in banks, pharma and capital goods stocks boosted the benchmark indices. The Nifty ended the day at 8956.75, up 54.90 points or 0.6 percent. The Sensex was up 97.64 points at 29459.14. About 1541 shares advanced, 1327 shares declined and 193 shares were unchanged. Midcap index outperformed and was at record closing high with stocks like Muthoot Finance and Relaxo Footwear gaining 5-7 percent intraday.

Analysts are bullish on India post Budget 2015 proposals. Morgan Stanley Managing Director Ridham Desai sees the bull market in India continuing and expects corporate earnings to grow around 24 percent over the next couple of years, and sees them compounding 20 percent over the next five years. Morgan Stanley has retained its Sensex target of 32,500 by December. Desai does not see any reason for the maret to go through a deep correction.

Samir Arora, founder and fund manager at Helios Capital expects returns of around 15 percent from the market this year. He is bullish on sectors such as IT, pharma, consumer durables and NBFCs. He prefers private sector banks over public sector ones.

Buzzing stocks

Banks extended Friday’s gains on aggressive buying in Axis Bank, which closed up 6 percent. Jaitley proposed to remove distinction between the foreign direct investment (FDI) and foreign institutional investors (FIIs). The move is likely to benefit private sector banks like Axis Bank and YES Bank.  Other gainers in the sector were HDFC Bank and ICICI Bank.

Cipla, L&T and BHEL were other gainers in the Sensex.

Oil marketing stocks like HPCL, BPCL and IOC rallied after government hiked petrol and diesel prices over the weekend.

Meanwhile, FMCG index was dragged heavily by ITC which lost 5 percent at close. The stock was still reeling under excise duty hike on cigarettes proposed by the FM. Most brokerages have downgraded the stock and recommend selling it.

Other stocks that were under heavy selling pressure were selective auto stocks. Bajaj Auto, Hero Moto and Tata Motors were sulking after announcing February sales number.

Eicher Motors saw good buying interest after its flagship brand Royal Enfield reported 49 percent jump in its February sales. 

Shares of aviation stocks like Jet and SpiceJet were down on the back of increased air turbine fuel price by a steep 8 percent.

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