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Sensex rises on euphoria; pares gains to close 131 points higher news
28 February 2011

The Bombay Stock Exchange (BSE) Sensex ended 17,823 points, just points up from Friday's closing, after gaining around 540 points in intra-day trading in the aftermath of the finance minister's Budget speech.

 Market players were excited over Pranab Mukherjee's incentives for private investment in infrastructure and GDP projections, which pushed the Sensex up by 540 points just after the announcement. However, they were cautious, and  shed a major component of their gains in the last hour of trade following selling pressure at higher levels.

The Nifty ended up 29 points at 5333, after touching the day's high of 5,477.

The midcap index ended at 6377, higher by 23 points and the smallcap index shut shop at 7820, up 30 points.

The finance minister projected a lower fiscal deficit target of 4.6 per cent for the year ended March 2012 as against 5.1 per cent for 201-11. He also pointed out that exports were up 9.4 per cent in 2010-11, agricultural growth stood at 5.4 per cent and industry was 8.1 per cent in 2010-11.

The finance minster has announced various incentives for the farm sector and set a disinvestment target of Rs.40,000 crore (See: FM focuses on farm sector; cuts interest rate on loans).

(See: Government to raise Rs.40,000 crore through disinvestment). He has also raised the limit of funds to be invested by foreign investors in corporate bonds issued by companies involved in the infrastructure sector to $25 billion (See: Mukherjee raises FII limits for infrastructure investments) The upsurge was supported by stocks in fast moving consumer goods (FMCGs), public sector units, realty, capital goods, information technology, and refinery sectors.

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Sensex rises on euphoria; pares gains to close 131 points higher