The stock market reacted cautiously to the Economic Survey, which was tabled in Parliament on Thursday, and volatility is likely to persist till the announcement of the Budget, analysts has said.
Marketmen feel the reformist wishlist prescription for the government for next five years though presents a good road-map for future growth but is hard to implement.
The Economic Survey mooted the idea of doing away with cess, surcharges on taxes and initiating reforms in petrol pricing and financial sector, besides recommending a disinvestment target of Rs 25,000 crore (Rs 250 billion) annually.
"The reforms prescribed are not easy, but have a vision. It is too early to expect that everything can be done," SMC Global vice president Rajesh Jain said.
The Bombay Stock Exchange benchmark Sensex surged by 119 points to a high of 14,764.35 points immediately after the tabling of the Survey, but lost momentum thereafter and plunged to a day's low.
Sensex fell to a low of 14,568.12 points, down by 77.35 points, within 30 minutes of the presentation of the survey.
"The market is nervous and that is why the volatility is high. People are waiting for the Budget to enter the market as it would be great if we can implement at least 20 per cent of the prescription," Kejriwal Research and Investment Services Head Arun Kejriwal said.
Marketmen, however, said the market movement is on expected lines, as in the preceding years also volatility prevailed in the market before the Budget.
"Volatility is always there before Budget. Market is expecting too much from the Budget and a huge profit-taking is going on right now," Jain said.
Volatility has been high in the Indian bourses for the past two weeks, amid weak global cues and expectations what sops would come in the Budget.
"People are waiting for the Budget and nobody is willing to invest at this point. Once the market settles down, then only we can expect something from the market," Kejriwal said.
