Investor wealth surged by a massive Rs 10.48 lakh crore in last two sessions as FM Nirmala Sitharaman unveiled a Budget on February 1, which focused on increased spending to revive an economy hit by Covid-19 and recession. Budget proposals such as raising 34.5 per cent in capex to Rs 5.54 lakh crore in the fiscal year 2021-22, voluntary vehicle scrappage policy, hike in FDI limit in insurance to 74%, and divestment and re-capitalisation plan for PSU banks have brought bulls back on the Dalal Street.
In two sessions, Sensex has rallied 3,511 points and Nifty gained 1,012 points. In the current session, Sensex closed 1197 points higher at 49,797 , Nifty rose 366 points or 2.57% to 14,647. In the previous session, Sensex ended 2,314 points higher at 48,600 and Nifty gained 646 points to 14,281.
With the two-day rally, Sensex and Nifty have erased all losses they suffered in the previous six sessions. Sensex lost 3,506.35 points or 7.04 per cent between January 20 and January 29 after investors booked profit ahead of Budget and 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.
The six-session loss had led to erosion of market wealth by Rs 11.58 lakh crore.
On Sensex today, top gainers were SBI, UltraTech Cement, HDFC Bank, L&T, Bharti Airtel, Maruti Suzuki and Kotak Bank. Of 30 Sensex stocks, 27 closed in the green. Economists and market analysts opined said that this was a bold growth-oriented budget and the absence of the much-feared 'COVID tax' and surcharges on income tax is a great relief.
Besides, privatisation of two nationalised banks and proposal of monetisation of assets like land are clear positives, according to them.
Market response to the Budget reflects growth optimism and the government has presented a pragmatic, bold and visionary Budget in these difficult times, they said.
In today's session, market breadth was positive with 1,755 stocks closing higher against 1184 stocks ending lower on BSE. 175 stocks were unchanged. Number of shares rising to their 52-week highs stood at 249 against 54 touching their 52-week lows. 334 stocks hit their upper circuits against 277 falling to their lower circuits, respectively.
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