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Budget rally adds Rs 14 lakh cr to market wealth as Sensex zooms 4,329 pts in 4 sessions

Sensex has added 4,329 points this week as FM Nirmala Sitharaman presented a growth-oriented Budget, with higher fiscal deficit limits and privatisation plans on February 1

Aseem Thapliyal | February 4, 2021 | Updated 18:11 IST
Budget rally adds Rs 14.35 lakh crore to investor wealth as Sensex zooms 4,329 points in four sessions
In the latest leg of rally, Sensex and Nifty have erased all pre-Budget losses they suffered after hitting record highs on January 21.

The Budget rally has made investors richer by Rs 14.35 lakh crore in the last four sessions. Market cap on BSE rose to Rs 200.47 lakh crore today against Rs 186.12 lakh crore on January 29 this year.

Sensex has added 4,329 points this week as FM Nirmala Sitharaman presented a growth-oriented Budget, with higher fiscal deficit limits and privatisation plans on February 1.

The index closed 358 points higher at 50,614 today, adding 4,329 points in just four sessions. Nifty too rose 105 points to a record high of 14,895 in the current session. The 50-stock index added 1,261 points this week

In the latest leg of rally, Sensex and Nifty have erased all pre-Budget losses they suffered after hitting record highs on January 21.

In a pre Budget sell-off, Sensex had lost 3,506.35 points or 7.04 per cent between January 20 and January 29 after investors booked profit as weak global markets led to negative sentiment on Dalal Street.

Similarly, Nifty declined 1,010.10 points or 6.89 per cent during the period.

On January 29, Sensex ended 588.59 points lower at 46,285. Similarly, Nifty closed 182.95 points lower at 13,634.

Sensex likely to hit 61,000 by 2021-end: Morgan Stanley's super bullish bet on Indian market

Meanwhile, benchmark indices closed at record highs today, adding Rs 2.04 lakh crore in market wealth against the previous close. On Wednesday, market wealth on BSE stood at Rs 198.43 lakh crore.  

Rohit Singre, Senior Technical Analyst at LKP Securities said, "One more positive session with index touching fresh high and closed a day on fresh highs at 14,888 with a gain of nearly one percent forming a bullish candle on the daily chart. Going forward, 14,750 has become a strong base in Nifty. Also, one can consider this as a make or break level. Any break below said levels can see some more profit booking but holding above said levels we may see index to march towards 15k mark."

On Sensex, ITC was the top gainer, soaring 6.11 per cent, followed by SBI, Bajaj Finance, ONGC, M&M, Kotak Bank, Bajaj Finserv, NTPC and UltraTech Cement.

SBI share closed 5.73 per cent higher after the country's largest lender reported a standalone net profit of Rs 5,196.22 crore in Q3 , down 7 per cent year-on-year but above street estimates.

Shares of Asian Paints, IndusInd Bank, Bharti Airtel, Tech Mahindra, Titan and Infosys, were the top losers, shedding up to 2.08 per cent.

The indices hit record closing highs a day ahead of RBI announcing the outcome of a bi-monthly monetary policy announcement at 10 AM on February 5.

"We cannot expect more from the on-going Monetary Policy Committee meeting, considering the encouraging economic outlook, than to maintain a status quo and accommodative stance... they will work on measures to normalise the gap between the repo rate and market yield," said Vinod Nair, Head of Research at Geojit Financial Services.

In today's session, market breadth was positive with 1,808 stocks closing higher against 1,176 stocks ending lower on BSE. 144 stocks were unchanged.

Number of shares rising to their 52-week highs stood at 297 against 44 touching their 52-week lows. 363 stocks hit their upper circuits against 231 falling to their lower circuits, respectively.

Sensex, Nifty close at record highs: Five factors behind the market rally

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