The week saw the broader market, represented by the BSE Sensex, open at 29,214.89 and close at 29,220.12, rising a mere 5.23 points. However, the relatively flat market did show signs of volatility during the week with the highest and lowest points of the Sensex separated by 625 points.
The benchmark fell on Monday (-0.88%) and Thursday (-0.9%); but registered its maximum gain on Friday , rising 1.65%. Also on Friday, of the total number of companies eligible for trading, 109 remained unchanged, 1,815 stocks rose while 1,079 stocks saw a fall.
The rally in the domestic equity markets on Friday was on account of the Economic Survey, which estimates economic growth between 8.1% and 8.5% in 2015-16 and announced the scope of major reforms in the budget. Sentiments further strengthened after survey suggested that the government's fiscal deficit of 4.1% for 2014-15 is likely to be achieved by the economy.
A good set of indicators from economic survey-which projects GDP to improve to 8.1%-8.5% in 2015-16-added flair to market expectations before the budget. The Economic Survey expects better platform for manufacturing in India and inflation to be lower than the RBI's forecast. A good railway budget, which has provided a plan for five years, has also helped the positive environment.
Among the BSE 500 companies, the top gainers during the week were ABG Shipyard (25.63%); Risa International (14.19%); Rolta India (11.63%); Oberoi Realty (9.78%); and Lycos Internet (9.21%). Meanwhile, the top losers in this list were Texmaco Rail & Engineers (16.23%); Rasoya Proteins (14.55%);KSK Energy Ventures (13.57%); Ess Dee Aluminium (12.45%); and ALSTOM India (11.80%). During the week, the FIIs invested Rs 4625.8 crore in the stock market, while the total FII investment in equity and debt during this period, according to the NSDL website, was Rs 8047.09 crore.
Jayant Manglik, president, retail distribution, Religare Securities said, "We are entering into the big event of Union Budget on strong note and participation from the banking sector is adding to that positivity. Having said that, stocks may witness volatile movement across the board in response to the Budget announcements, so investors must maintain cautious approach and avoid over-leveraging. "
Adding to the budget expectations, Debopam Chaudhuri, vice president, research & chief economist, ZyFin Research said, "The economic survey upholds India's economic position and envisages a reforms plan focused upon 'creating opportunity and reducing vulnerability'. This definitely throws a lot of light on what to expect from tomorrow's budgetary announcement, at least in spirit." He added that fiscal consolidation, balanced with right amount of expenditure on core areas like education and healthcare, should pave way for a five-year growth vision for India, ensuring the brightest spot for India among emerging economies.
Both the BSE and the NSE will remain open tomorrow, on account of the Union Budget.
FULL COVERAGE:Union Budget 2015