The markets have opened on a firm note, continuing its good run post the Budget. The Sensex is quoting at 16839, higher by 69 points and the Nifty is at 5036, up 30 points.
The benchmark indices rose over 3% in the last two trading days after the finance minister offered to progressively cut budget deficit over the next three fiscal years, changed personal tax rates which will lift disposable incomes in the hand of individuals and reduced surcharge on corporate tax for domestic companies to 7.5% from 10%.
The market wealth surged by over Rs 1,50,000 crore in the last two trading days after the Finance Minister Pranab Mukherjee presented the Union Budget 2010-11 on February 26. And the total market capitalization (m-cap) of actively traded stocks on the Bombay Stock Exchange (BSE) increased by Rs 163,722 crore to Rs 5,996,362 crore on March 2 from Rs 5,832,639 crore on February 25.
The US markets were flat overnight, with the Dow adding two points and the Nasdaq strengthening by seven points. Asian markets also opened flat, albeit with a positive bias. The Hang Seng is stronger by 10 points and the Nikkei is higher by 31 points in opening trades.
Tata Power has continued from where it left on the previous day. The power company has strengthened by 1.6% at Rs 1291 to be the top gainer on the BSE. Jaiprakash Associates has added 1.58% at Rs 138 and Tata Motors has proved that its previous day's performance was not just a flash in the pan by adding another 1.4% at Rs 809. TCS, Bharti Airtel and DLF are among the other major gainers. And index heavyweight, Reliance Industries has inched up further by 0.8% at Rs 991.
On the loser's side, Sun Pharma has weakened by 1.5% at Rs 1525, ONGC has shed 0.7% at Rs 1104 and L&T has lost 0.5% at Rs 1574.
The market breadth is positive. Out of 1394 stocks traded on the BSE, there are 1104 advancing stocks as against 255 declines.