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Sensex Flirts With 50,000-Mark, Nifty at Record High as Banking, Auto Stocks Lead Post-Budget Cheer – News18

The Sensex flirted with the 50,000 mark on Tuesday morning as it zoomed over 1,350 points and the Nifty crossed the key 14,500-level in the opening session, a day after the Union Budget which outlined a slew of measures to pull the economy out of the pandemic-induced slump.

The BSE gauge Sensex topped the 50,000 mark briefly before coming down a notch as it witnessed a strong rally in opening deals. Likewise, the NSE barometer Nifty was higher by nearly 350 points or 2.42 per cent at 14,627 in early trade. In the Sensex pack, all shares were trading in the green barring HUL.

Buying was visible across sectors as all the 11 sector gauges compiled by the National Stock Exchange were trading higher led by nearly 4 per cent gain in Nifty Bank and Financial Services indices. Auto, FMCG, IT, Infra, Metal and IT indexes also rose between 1.5-3 per cent.

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The benchmarks had recorded their best performance on a budget day in over two decades after the finance minister announced a slew of measures to increase spending and revive the economy.

Enthused over various measures, the Sensex zoomed 2,314.84 points or 5 per cent to finish at 48,600.61; and the Nifty soared 646.60 points or 4.74 per cent to finish at 14,281.20 the biggest single-day gains ever for the benchmarks on Budget day. Foreign portfolio investors (FPIs) purchased shares worth a net Rs 1,494.23 crore on Monday, according to exchange data.

Asian markets were also trading broadly higher in afternoon trade. Economists and market analysts are of the view that this is a bold growth-oriented budget and absence of the much-feared COVID tax and the 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 in brief, the government has presented a pragmatic, bold and visionary budget in these difficult times, they said.

Banking stocks had led the market rally with the Nifty Bank index hitting its all-time high after Sitharaman announced privatisation of two public sector banks and measures to clean up the NPAs in the banking sector. The Nifty Bank index surged over 9 percent in intraday deals to hits its all-time high of 33,305 post the announcement with all constituents, except IDFC First Bank, in the green. The index ended 8 percent higher for the day. IndusInd Bank and ICICI Bank jumped the most, up 15 percent and 13 percent, respectively.

Shares of auto companies had also rallied on Monday after Finance Minister Nirmala Sitharaman announced a voluntary vehicle scrapping policy to phase out old vehicles. The Nifty Auto index surged over 4 percent post the announcement with all index constituents in the green. Ashok Leyland jumped the most, up over 10 percent while Tata Motors, M&M, Bosch, Bharat Forge, Motherson Sumi, MRF and Eicher Motors added between 4 percent and 7 percent.