After the budget, the boom in the market continued for the second day on Tuesday and the BSE Sensex rose by 1200 points.
Mumbai: After the budget, the market boom continued on Tuesday for the second day and the BSE Sensex rose by 1200 points. At the same time, the NSE Nifty regained the level of 14,600.
The market gained momentum due to intense buying in shares of banks, finance and infrastructure companies. According to traders, favorable global cues and fresh capital inflows maintained the momentum.
The 30-share BSE Sensex gained 1,197.11 points, or 2.46 percent, to close at 49,797.72. The BSE Sensex once rose to the level of 50,000. Similarly, the National Stock Exchange’s Nifty gained 366.65 points, or 2.57 percent, to close at 14,647.85.
The Sensex has strengthened by 3,511 points or 7.58 percent in two sessions, including the pace of the budget day. At the same time, the Nifty has gained 1,007.25 points i.e. 7.38 percent. State Bank of India (SBI) was the biggest gainer among the Sensex stocks. It gained 7.10 percent. Apart from this, AltraTech Cement, HDFC Bank, L&T, Bharti Airtel, Maruti Suzuki and Kotak Bank were also good. Of the 30 Sensex stocks, 27 closed with gains.
Only three stocks, Bajaj Finserv, Titan and HUL declined by up to 2.34 percent. Most analysts believe that the proposals made in the budget like high capital expenditure, status quo on the direct tax front and capital gains tax were not increased, have a positive impact on the market.
According to the provisional data available with the stock market, foreign institutional investors bought shares worth Rs 1,494.23 crore on Monday. Economists and market analysts believe this to be a co-operative budget to drive growth.
There was apprehension about Covid-tax and surcharge on income tax, but it was not proposed in the budget, which has sent a good message. According to him, apart from this the proposal of privatization of two public sector banks and to offer other assets including land is a positive sign.
Vinod Nair, head of research, Geojit Financial Services, said, “There is a new boom in sectors like banks, infrastructure and vehicles.” Increase-oriented proposals in the budget have again increased the attraction of these areas. Last week, FPIs (Foreign Portfolio Investors) sold continuously. Now the market has returned again and after the budget they again become pure buying. “
“The market was also supported by positive global sentiment ahead of the new stimulus package for Kovid in the US,” he said. Other markets in Asia gained momentum amid talks about the stimulus package in the US. In Europe, major markets witnessed a boom in initial trade. In the foreign exchange market, the rupee gained 6 paise to close at 72.96 against the US dollar.
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