Mumbai: In a pre-budget rally, the sensex spurted by 81 points on the back of a sharp upsurge in select blue chips on the Stock Exchange today (Jun 28, 2004) as corporates began making purchases in blue chip counters on expectations of relief in duties and phasing out of exemptions.

The BSE Benchmark 30-share Index opened remarkably higher at 4784.58 and gradually moved upwards to the intra-day high of 4844.72 before ending at 4837.60 as against last Friday's (Jun 25, 2004) close of 4756.39, a net rise of 81.21 points or 1.71 per cent.

The upsurge, which has been termed by brokers as a pre-budget rally, was largely attributed to news that the Budget was likely to provide sops for investment and relief to salaried class. Besides, the Budget is expected move towards a uniform single rate of 16 per cent excise duty for most items along with phasing out of exemptions on them.

Operators as well as some corporates were believed to be heavy buyers in blue chip counters. However, retail investors remained somewhat cautious in view of negative activity by Foreign Institutional Investors (FIIs) and domestic mutual funds during last week.

FIIs seemed to be reshuffling their portfolios ahead of the presentations of the first budget by the Congress-led UPA (United Progressive Alliance) Government on July 8.

Key counters like RIL, Tisco, Infosys Tech, Tata Motors, SBI, Wipro, Zee Telefilms, Satyam Computers, HPCL, Dr Reddy's Lab, BHEL, Bajaj Auto, Cipla, GACL, Grasim, Hindalco, ICICI Bank, ITC, MTNL and Ranbaxy registered remarkably gains.

However, HDFC, Hero Honda, ONGC and REL suffered a marked setback on profit booking.