Sensex zooms over 1,700 points after Union Budget 2021
What's the story
The Bombay Stock Exchange benchmark Sensex zoomed over 1,700 points and National Stock Exchange Nifty reclaimed the 14,000-level driven by gains in financial stocks on Monday after Finance Minister Nirmala Sitharaman presented the Union Budget, which analysts believe is growth-oriented. After touching an intra-day high of 48,004.71, the 30-share Sensex was trading 3.59 percent higher at 47,946.76 and Nifty surged 3.39 percent at 14,096.75.
Information
IndusInd Bank top gainer; Dr. Reddy's, Tech Mahindra among laggards
On the Sensex chart, IndusInd Bank was the top gainer, rallying over 11 percent, followed by ICICI Bank, SBI, HDFC, M&M, and Axis Bank. On the other hand, Dr. Reddy's, Tech Mahindra, and TCS were among the laggards.
Market response
Market response to budget reflects growth optimism
"This is a growth-oriented budget. The absence of COVID-19 tax and surcharges on Income Tax is a relief. Privatization of two nationalized banks and proposal of monetization of assets like land are clear positives," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said. "Raising FDI in insurance from 49 to 74 percent is welcome. Market response to budget reflects growth optimism," he added.
Further statements
Certain provisions will be transforming for financial markets
According to Lav Chaturvedi, ED and CEO at Reliance Securities, the single securities market code announced in the Budget speech by the Finance Minister today, will bring out the ease of doing business in Indian financial markets. "This, along with the FDI regime and development financial institution, would be transforming for financial markets," he said.