Economists and market veterans lauded the Union Budget, presented by Finance Minister Nirmala Sitharaman in Parliament on Monday. They now believe the market can go further if corporate earnings keep surprising positively.
The 30-share pack Sensex soared 1,197.11 points or 2.46 per cent to close at 49,797.72. The index also recouped all of the losses suffered in the week preceding Budget. Its broader peer NSE Nifty advanced 366.65 points or 2.57 per cent to 14,647.85.
“The 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,” said Vinod Nair, Head of Research at Geojit Financial Services.
Investors grew richer by Rs 4.19 lakh crore as the market capitalisation of BSE-listed firms rose to Rs 196.65 lakh crore.
Market at a glance:
- Indigo Paints hits 20% upper circuit, up 110% over issue price
- TaMo surges 17% on scrappage policy push, stellar Q3 earnings
- Titan sees some profit booking after Monday’s surge, down 1%
- Cement, infra stocks gain as Budget announcements fuel rally
- 249 stocks hits 52-week highs: ITC, Grasim, SBI, Siemens, TaMo, ICICI Bank and Bosch top names
Among the bluechip stocks, Tata Motors was the top gainer, rising 16.93 per cent. Shree Cements, UltraTech Cement, SBI, UPL, Grasim Industries, HDFC Bank and Hindalco were other gainers.
HDFC Life Insurance was the top loser in the Nifty pack, falling 2.52 per cent. Bajaj Finserv, Hero MotoCorp, HUL, SBI Life Insurance, Titan and Britannia Industries were others that ended in the red.
Broader market indices also gained but underperformed their headline peers. Nifty Smallcap rose 1.23 per cent and Nifty Midcap added 2.38 per cent. Nifty 500 — the broadest index on NSE — advanced 2.41 per cent.
Asjok Leyland, TVS Motor, Zee Entertainment, Century Textiles, KEC International and Indian Bank were top gainers from mid and smallcap indices, climbing in the range of 6-10 per cent.
Balrampur Chini Mills, DCM Shriram, EID Parry, Coromandel International, Varun Beverages and SAIL were major losers from the broader market space, falling in the range of 3-7 per cent.
“Markets may see a breather after the recent surge but the bias would remain on the positive side. Participants should maintain their focus on identifying the right opportunities across sectors.”
All sectoral indices closed with gains. Nifty Auto was the biggest gainer, surging 4.01 per cent. Nifty Realty, Nifty Bank, Nifty PSU Bank and Nifty Financial Services were others that rose, more than 3 per cent each.
Market breadth was in favour of gainers as 1,755 stocks ended in the green, while 1,184 names settled with cuts. As many as 249 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 54 scrips hit 52-week lows, mostly from the microcap space. About 335 stocks hit upper circuit limits and 277 lower circuit limits.
European markets were trading with gains as well. London-based FTSE was up 0.71 per cent while Paris and Frankfurt were up 1.76 per cent and 1.26 per cent. In Asia, barring Indonesia that slipped 0.39 per cent, all markets closed with gains led by Taiwan.