Day after Budget, markets close with record high

“The stock market appears to be the most attractive saving option, since the tax burden on the salaried middle class has been increased.” said V Raman, a middle level company executive. S. Sheela, an expert investor on short term capital gains (selling a share within a year of buying it), is also happy that the budget did not impinge on small and medium level investors much. 

“I instructed my broker to pick up shares of solid infrastructure companies, first thing yesterday,” she added. L Narasimhan, a sub broker confirmed that his phone lines were flooded with requests to buy up shares “as soon as the market began to rise”. 

The Mandaveli-based Narasimhan said he had a tough time telling his clients to wait and watch and not rush into a buying spree. However, clients were unwilling to let go of a chance to gain, assuming the market would reach higher levels and cross 7400. Nifty ended at 7222. 30 by end of day. 

Another sub broker said clients demanded to be advised on the types of infrastructure companies. According to R Chandramouli, an Income Tax auditor, there have been some announcements in the budget impacting those playing the share market. 

“As of April 1, individuals will have to pay 10 % on dividend received if that amount breached Rs 10 lakh and the relevant companies in which a buyer had invested another 20%. 

However, since the number of middle class people who will fit into that bracket is negligible, people are rushing to see if they can make their money work for them at the stock market,” he said. Many brokers said potential investors enquired about investing in infrastructure projects, since the budget had made huge investment in this sector. 

“However, if the government acts quickly on land acquisition and other related problems that dog infra projects, the confidence of people won’t be misplaced,” said a broker.