Sensex zooms past 10500

STOCK REPORT

Riding on the back of a 'no-surprise' Union Budget 2006-07, benchmark indices surged nearly 2 per cent and ended at their highest ever closing levels on Wednesday, led by extended gains in auto, cement, metal, and tech shares.

The budget's focus on rural economy, infrastructure, and power sector while controlling the fiscal deficit, pegged at 3.8 per cent of GDP in 2006-07, helped the 30-share Sensex score the biggest ever post-budget rally.

Dealers attributed the rise to the status quo maintained on long-term capital gain, personal, and corporate taxes. A 25 per cent hike in securities transaction tax is not likely to impact market performance, they added.

The BSE Sensex ended at 10565.47, up 195.23 points, or 1.9 per cent, from Tuesday after touching a record high of 10,573.29.

The Nifty ended at 3123.10, up 48.40 points, or 1.6 per cent, from Tuesday. It touched an all-time high of 3127.25 during the session. The rise was supported by robust combined turnover (both exchanges together) of Rs 141.44 billion.

Market breadth continued to be tight as 51 per cent of the total stocks traded on the BSE advanced. Among 'A' group stocks, gainers outpaced losers with 72 per cent of them ending with a green tag.

Cement shares extended Tuesday's gains on continued focus on infrastructure activities in the budget. Gujarat Ambuja Cements and Grasim Industries rose 3 per cent and 4 per cent respectively.

Maruti Udyog and Tata Motors cheered the excise duty cut on small cars to 16 per cent from 24 per cent, by making new 52-week highs. Maruti Udyog and Tata Motors ended up 8 per cent and 4 per cent respectively.

National Aluminium Co and Hindalco Industries ignored the cut in product prices and rose 3 per cent and 4 per cent respectively.