Erasing early gains of about 195 points,the BSE benchmark Sensex was trading just about 26 points up amid Finance Minister Pranab Mukherjee unveiling the Budget proposals.
The 30-scrip BSE benchmark was trading 26.62 point or 0.15 per cent up at 17,702.47 at 12.06 pm.
Mukherjee is presenting the Union Budget 2012-13 in Parliament. Among other things,he has proposed to accelerate the pace of reforms and infrastructure investment up to Rs 50 lakh crore.
Banking,realty,power,capital goods and PSUs sectors led the early surge.
The acceleration in pace reforms proposal improved the trading sentiment, said Manoj Choraria,a Delhi-based stock broker.
He said proposal to raise infrastructure investment also triggered buying in capital goods sector stocks on expectations of more funds inflow.
The broad-based National Stock Exchange index Nifty also saw an upswing earlier in the day and spurt 62.40 points. Later,it was up just 11 points at about 5,392.
Sensex up 82 pts ahead of Budget
The BSE benchmark Sensex rose by over 82 points in early trade today as investors picked up selective stocks ahead of the Union Budget 2012-13.
The 30-share barometer,which fell by 243.45 points in the previous session,recovered by 82.61 points,or 0.47 per cent,to 17,758.46 in the first few minutes of trade today.
Similarly,the wide-based National Stock Exchange Nifty index moved up by 23.05 points,or 0.43 per cent,to 5,403.55.
Brokers said cautious trade on the back of selective buying by funds and retail investors on expectations of a market-friendly Budget for the year 2012-13 to be announced later in the day,influenced the trading sentiment.
Capital goods,power,realty,PSU,banking,metal and IT sector stocks were in demand,helping the Sensex to rise. Meanwhile,Hong Kong’s Hang Seng index was down by 0.20 per cent,while Japan’s Nikkei index shed 0.14 per cent in early trade today.
STOCKS (PRE-OPEN): Stocks to watch-March 16
* Asian shares steadied on Friday and the dollar took a breather after its recent broad rally spurred some profit taking,but a fresh batch of data suggesting the U.S. economy may be picking up momentum underpinned sentiment.
* The S&P 500 closed above 1,400 for the first time since the 2008 financial crisis on Thursday as new U.S. claims for unemployment benefits fell back to a four-year low,and manufacturing data in New York and the U.S. mid-Atlantic region improved.
KEY EVENTS TO WATCH
* Finance Minister Pranab Mulkherjee will present annual 2012/13 budget in parliament. He is widely expected to announce measures such as raising taxes on many manufactured items and services.
Mulkherjee is also expected to review various subsidies to signal to investors that the government is serious about fiscal consolidation. (Starts at 11 a.m. IST (0530 GMT)).
* RBI Deputy Governor Subir Gokarn will speak to the media after the federal budget is announced. On Thursday,the RBI left interest rates on hold and warned of resurgent inflation risks.
Stocks More on BG Group
Company INFO More on Indian Oil Corp
INDIAN STOCKS TO WATCH
* Kingfisher Airlines will have a full recovery plan in place in 2-3 days that will address its financial issues and restore dozens of flights,chairman Vijay Mallya said on Thursday.
* BG Group Plc has received at least two final bids for its 65 percent stake in India’s Gujarat Gas,three sources with direct knowledge of the matter said on Thursday,in a deal valued at about $900 million.
* Sri Lanka said it plans to auction new oil exploration blocks in the western Mannar basin and the northern Cauvery basin by mid-year,after finishing talks with India’s state-run Oil and Natural Gas Corporation on exploration rights.
Cairn India has discovered natural gas in two wells in Sri Lanka’s offshore Mannar basin,demonstrating the presence of hydrocarbons,although their commercial viability has yet to be determined.
* Indian Oil Corp (IOC),Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) hiked jet fuel price by 2 percent,the second increase in rates this month.
* India’s recoverable crude oil reserve has been estimated at 757.4 million tonne (MT) on April 1,which is not adequate to meet country’s growing energy needs,the minister of state for petroleum & natural gas R.P.N. Singh said. (Economic Times)
* The government slashed interest rate on deposits in the Employees Provident Fund (EPF) from 9.5 percent to 8.25 percent for 2011-12,affecting over 470 million subscribers.
* The Bihar government has received 2.65 trillion rupees in investment proposals for 603 industrial units intended to propel industrial development in Bihar,state Industries Minister Renu Kumari said.
* Sukhoi Civil Aircraft Company (SCAC) will be selling 10 Sukhoi Superjet (SSJ) 100 aircraft to Indian firm Aviotech Pvt Ltd.
FACTORS TO WATCH
* Dollar falls as profit-takers emerge near resistance
* Oil falls as US,UK plan oil reserve release
* Global shares gain after U.S. data
* S&P over 1,400 for first time since 2008 credit crisis