MARKET VIEW

After Monday's massive 870 points plunge on
the Sensex following the presentation of the
Union Budget, the index managed a tepid pull
back today, thanks mainly to FMCG stocks. The
Sensex opened 60 points higher at 14,104, and
touched a low of 14,000 points in morning
trades. The index, thereafter, exhibited high
volatility throughout the day owing to the
constant bouts of buying and selling in the market. The Sensex managed to touch
the day's high of 14,252, up 252 points from the day's low. The index finally ended
at 14,170, up 127 points. The market breadth was extremely positive - out of
2,630 shares traded, 1,461 declined and 1,071 advanced on the BSE. Most of the
sect oral indices managed to recover partially from yesterday.

budget specials

Exemption limit in personal income tax raised by Rs.15,000 from Rs.2.25 lakh to Rs.2.40 lakh for senior citizens; by Rs.10,000 from Rs.1.80 lakh to Rs.1.90 lakh for women tax payers; and by Rs.10,000 from Rs.1.50 lakh to Rs.1.60 lakh for all other categories of individual taxpayers.
Deduction under section 80-DD in respect of maintenance, including medical treatment, of a dependent who is a person with severe disability being raised from the present limit of Rs.75,000 to Rs.1 lakh.
Surcharge on various direct taxes to be phased out; in the first instance, by eliminating the surcharge of 10 percent on personal income-tax.

BUDJET 2009 EXPECTATION

The budget is expected to balance between social orientation and growth; as well as fiscal prudence. Greater allocation to infra, healthcare and education spending is likely to continue. Considering the large capital requirements going forward, opening up of several sectors to attract FDI / FII investment can be expected. 2% hike in excise and service tax is expected post 4% cut in excise through Stimulus I and II. Some benefits in personal income tax, increase in exemption limit of home loan interest and schemes to divert investment into infrastructure, are also expected. A tax amnesty scheme could be considered in the budget to address fiscal deficit. We anticipate the Finance Minister to indicate a clear way ahead that will lead to sustainable economic growth. The fiscal deficit is cause for concern and should be reigned in. While the Union Budget 2009 might appear to have several disappointments, it is expected to be a healthy one for the long term

MARKET VIEW 04.07.2009

The Sensex opened down 105 points at 14,553, on
weak cues from US and Asian markets. The index
slipped to a low of 14,500 but soon recovered.
Thereafter, the index was range bound for most part
of the trading day. The Sensex soared on hopes of
more positives from the Union Budget and touched a high of 14,946, up 446
points from the day's low. The Economic Survey and the Railway Budget have
been mostly positive; hence market players are now optimistic over the
forthcoming Budget. The market breadth was marginally positive - out of 2,686
stocks traded, 1,341 advanced while 1,263 declined.

MARKET VIEW 03.07.2009

BSE Sensex: (14658) ‘some more bounce until the budget is not ruled out and what we are actually witnessing is a sideways move’ the market once again traded sideways with no signs of any direction…looks like a directionless market until the budget…
The support for the Sensex is 14500 and the resistance to the up move is at 14809-15000
Nifty: (4349) the support for the Nifty is at 4292 and the resistance to the up move is at 4380-4400