Budget boosts bourses, Sensex rises over 1,400 points
Bombay Stock ExchangeIANS (File photo)

Budget boosts bourses, Sensex rises over 1,400 points

Mumbai, February 2, 2021

India's key stock markets continued their bull run for the second consecutive session on Tuesday with the S&P BSE Sensex gaining over 1,400 points.

As per experts, positive global cues, budgetary announcements and healthy results led to the bull run.

On Tuesday, FIIs were net buyers to the tune of Rs 1,494.23 crore in BSE, NSE and MSEI in the capital market segment.

Accordingly, the markets had a gap-up opening and then remained in a narrow range through the day.

Notably, the Sensex reclaimed the 50,000 mark in the initial hour of the rally.

But a bout of profit booking dampened sentiments.

Globally, Asian stocks rose on Tuesday as signs of progress in US stimulus talks boosted Wall Street overnight.

Subsequently, an upbeat mood from Asian markets spilt over to Europe in early trade.

On the domestic front, budget announcements as well as positive macro data bolstered sentiments.

Among domestic sectors, banks, realty, media, auto and infrastructure gained the most.

Banking stocks surged after the Finance Minister on Monday announced that two public sector banks will be privatised apart from the IDBI Bank in the upcoming financial year.

Consequently, the Sensex closed at 49,797.72, higher by 1,197.11 points, or 2.46 per cent, from its previous close.

Similarly, the NSE Nifty50 also made healthy gains.

It ended the day's trade at 14,647.85, higher by 366.65 points, or 2.57 per cent, from its previous close.

"Nifty rose to just shy of the previous all time high of 14754, by making an intraday high of 14,732 on Feb 2," said Deepak Jasani- Head of Retail Research at HDFC Securities.

"A move above 14,754 is essential to convince more buyers to buy now or on the next dip. Volumes and sentiments currently favour this happening."

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said, "We believe once the fine-print is absorbed, the market focus would return to the fundamentals, viz. corporate earnings growth, which is showing tangible momentum. Earnings upgrades are seen for the second consecutive quarter."

"Incrementally, earnings drivers are shifting to cyclical, with Corporate Banks, Cement, and Metals driving growth. Thus, overall the long term structure of the market remains positive. In the near term, the market will focus on development around US fiscal stimulus and RBI's monetary policy due this week."

In addition, Geojit Financial Services Research Head Vinod Nair: "Start of a new rally is noticed in sectors like banking, infra and auto, supported by a renewed traction provided by a growth oriented budget."

"After consecutive selling by FPIs last week, the market witnessed a reversal in trend becoming net buyers post the budget. Positive global sentiments ahead of a new US Covid support bill also lifted the market."

IANS

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