Short selling to go a long way for Street

 It was felt that the government should tax only those companies that have grown big enough while the tax sops should be continued on new companies.

 Further, the fact that the Finance Minister did not tinker with the capital gains tax structure is also a big positive for the markets.

 "I think IT companies have matured enough to pay the Minimum Alternative Tax (MAT). The move to tax cement companies which sell a bag of cement (50 kg) at over Rs 190 is clearly intended to curb the rising inflation," said Sanjay Sachdev, country manager-India of Shinsei Bank Group. Cement and IT stocks tumbled in the wake of the announcement.

 C J George, managing director of Geojit Financial Services welcomed the move to allow short selling (selling of shares without actually having the physical shares) would act as a tool in the hands of institutions to calm an "overheated market".

 The proposal to put in place a lending and borrowing programme along with short selling would mean all short selling would result in delivery of the shares.

 George said this facility of lending of shares should also be extended to individual retail investors.