Mumbai, Mar 1: The Union Budget turned out to be a non-event for the stock markets, even as the benchmark Sensex posted a 1.32 per cent gain as the concluding week for derivatives contract sparked shortcovering by investors. Extremely weak global cues at the weekend, however, left behind a trail of bearish mood for the next week.

A Budget proposal to hike short-term capital gain tax to 15 per cent had a knee-jerk reaction on the market but overall proposals were hailed by the industry captains, expressing confidence that the market will stabilise in the next few days if global factors are encouraging.

The Railway Budget has created favourable conditions for the market as it provided across-the-board concessions in fares and freight rates with a thrust on modernisation of rail infrastructure.

Analysts showed more concerns over negative global factors as the bourses continued to be influenced by developments in world markets, especially the US as any recession in the world's largest economy will affect other emerging economies.

Finance Minister P Chidambaram has announced tax sops to industries such as two-wheeler and small car, pharma, infrastructure, hospitals, hotel, consumer product and capital goods in the budget.

In volatile trade throughout, the Bombay Stock Exchange 30-share index moved widely in a range of 18,137.28 and 17,137.99 before ending the week at 17,578.72, a net rise of 229.65 points from last weekend's close of 17,349.07.