Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Markets open strong ahead of budget
Sat, 28 Feb 09:30 am

The major Asian stock markets were closed today on account of Saturday. The Indian markets have, however, opened on a positive note ahead of budget. All of the sectoral indices are trading in the green with the capital goods and realty stocks leading the pack of gainers.

BSE-Sensex is currently trading up by about 225 points (up 0.77%), while the NSE-Nifty is higher by about 64 points (up 0.72%). Both BSE Mid Cap and BSE Small Cap indices have also opened the day in green, up by 0.71% and 0.62% respectively.

In the budget that is expected to be tabled in the parliament today the Finance Minister (FM) is expected to re-introduce infrastructure bonds that debuted in 2010. Apart from it, there are chances that the medical reimbursement limit will be raised to Rs 50,000 from an existing ceiling of Rs 15,000. We reckon re-introduction of infra bonds could be a good move considering government's renewed focus on investments. It shall help government mobilize money for long term as such bonds have lock in for a certain time period. Further, rise in medical limit is expected to benefit the aam aadmi as medical costs have sky rocketed in recent years.

PSU banking stocks have opened the day on a strong note. Indian bank and Vijaya bank are leading the pack of gainers. During many budgets in the past, government was kind enough to extend support by announcing recapitalization measures for PSU banks. And while we are yet to see what the government shall do in this budget, industry has high hopes to say the least. The ED of Punjab National Bank expects FM to allocate Rs 200-300 bn in order recapitalize PSU banks. However, it remains to be seen if government will oblige this time as recapitalization of inefficient PSUs is effectively a waste of tax payers money.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Markets open strong ahead of budget". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms