Sensex and Nifty closed higher for the third straight session today making stock market investors wealthier by Rs 5.13 lakh crore since Union Budget was presented on February 1. Market capitalisation on BSE rose from Rs 153.04 lakh crore on Saturday to Rs 158.18 lakh crore at the end of trading today.
While Sensex has gained over 1,407 points or 3.54 per cent over the last three sessions, Nifty rose 427.30 points or 3.66 per cent during the period.
Analysts said improved business sentiment and positive global cues helped the benchmark indices post gains in the last three sessions.
Positive news on economic front too helped indices recover their Budget day losses.
On Monday, data showed manufacturing activity expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, suggesting the economy may be getting back on firmer footing.
Services sector activity surged to a seven-year high in January driven by sharp increase in new business orders, leading to job creation and business optimism amid favourable market conditions, a monthly IHS Markit survey said today. Besides, reports of a breakthrough in coronavirus treatment enthused investors.
"Nifty continued its upmove and surpassed its budget day high indicating that the budget hangover is over. During the trading hours, January Service PMI data was released which showed reading as 55.3 compared to 53.3 (MoM), a 7 year high. Global markets stood in the green which helped bulls consolidate further.
Towards the fag end, Nifty surged ahead on strong gains in the metal pack on hopes that China will soon overcome the dreaded coronavirus threat. We anticipate further bullishness if Nifty crosses above the level of 12150 decisively," said Shrikant Chouhan, senior vice-president, equity technical research at Kotak Securities.
On Budget day( February 1, Sensex tanked nearly 1,275 points intra day from the day's high, and pared losses to close 987.96 points or 2.43 per cent lower at 39,735.53.
This was the benchmark's biggest drop since October 24, 2008, when it had plummeted 1,070.63 points, and the fourth biggest fall overall.
On similar lines, Nifty plunged 300.25 points or 2.51 per cent to close at 11,661.85. Investor wealth plunged by Rs 3.46 lakh crore to reach Rs 1,53.04 lakh crore on BSE.
Vinod Nair, Head of Research at Geojit Financial Services said, "Indian markets are mirroring the global markets and trading on a higher note powered by rate-sensitive stocks. With the overreaction on budget mostly done, the market's focus will turn to how global events and Q3 results span out. Inflation being on the higher side there is no further room left for the central bank to tweak rates and is expected to follow an accommodative stance in the policy due tomorrow."
At the closing bell, Sensex was 0.87 per cent or 353.28 points higher at 41,142.66. Nifty rose 109.50 points, or 0.91 per cent, to settle at 12,089.15 today.
By Aseem Thapliyal