Sensex Hikes over By 350 Points After Union Budget 2010-11

Sensex Hikes over By 350 Points After Union Budget 2010-11

Mumbai (ABC Live): The Bombay Stock Exchange benchmark Sensex hiked over 350 points as investors cheered the Union Budget 2010-11, especially the direct tax sops that will put more money in the hands of the consumers.

Mumbai (ABC Live): The Bombay Stock Exchange benchmark Sensex hiked over 350 points as investors cheered the Union Budget 2010-11, especially the direct tax sops that will put more money in the hands of the consumers.

The 30-share Sensex started to climb up sharply soon after Finance Minister Pranab Mukherjee proposed changes in the income tax slabs cutting the rate to 10 per cent for income up to Rs five lakh.

The benchmark index was trading up 346 points at 16,600 at 1330 hrs on the BSE.

"The direct tax sops announced were good for the market as investors were not expecting anything on the tax front. So it came as a welcome move.

Among the sectors banking, auto and infrastructure need to be watched," Angel Broking VP Research Sarabjit Kour Nangra said.

The Sensex skyrocketed on the back of a strong rally primarily in the auto and bank stocks.

Mahindra & Mahindra rose six per cent, Maruti Suzuki by four per cent, Tata Motors by six per cent, realty major DLF by seven per cent, State Bank of India by 4.9 per cent, private sector lender ICICI Bank by three per cent, Reliance Infrastructure by five per cent and Reliance Industries by three per cent.

"It was expected that the government would withdraw the stimulus package. But the partial rollback came as a breather for the market. This brought about a rally in the stocks, specifically in sectors like auto and realty," SMC Global VP Rajesh Jain said.