If you have money locked in equities, most likely you would have recorded some gains on your portfolio, or maybe substantial gains if you had the right shares in the post-budget rally.
In the past three trading session since the Finance Minister Arun Jaitley presented the Union Budget 2016-17 in Parliament, 95 per cent stocks in the BSE 500 index gave positive return to investors with a bagful or stocks rising over 25 per cent.
Suven Life Sciences surged the most — 33.13 per cent, followed by Inox Wind (30.72 per cent), Delta Corp (28.73 per cent), Marksans Pharma (27.18 per cent) and Hathway Cable & Datacom (27 per cent).
On the other hand, 25 stocks disappointed investors. Yamini Investments, Castex Technologies, United Spirits, Sunrise Asian and Tree House Education & Accessories slid 12.29 per cent, 6.43 per cent, 6.42 per cent, 5.64 per cent and 3.42 per cent, respectively.
All the banking stocks remained in focus post budget on hopes of further rate cut and Reserve Bank of India’s easing capital recognition norms for banks. Banking majors such as Indian Bank, ICICI Bank, Axis Bank, Central Bank of India, State Bank of India, Union Bank of India and Syndicate Bank surged up 20 per cent in the post budget rally.
Domestic equity markets, which gave thumbs up to the Budget once the overall direction seeped in, surged 1,605 points in the past three trading session on hopes of further rate cut by RBI in the ongoing calendar year 2016 amid firm global cues. NSE Nifty 50 index also gained 488 points post budget till March 3.
Market capitalisation of BSE-listed companies soared by Rs 5,32,520 crore to Rs 91,15,665 crore in the three-day rally.
Data showed that foreign institutional investors, who had been major sellers during run up to the Budget, were net purchasers worth Rs 1,437 crore in Thursday’s trade, adding to optimism.
In a post-budget report, investment bank, UBS, revised end-2016 Nifty target is 7,500 and in the downside scenario the 50-share index can touch 6,500.
For upcoming trading sessions, Dipen Shah, senior vice-president and head of private client group research, Kotak Securities, said, “The probability of the GST Bill getting passed in the current session of Parliament looks low and markets will now look out for reforms on the executive side. Markets will also await management commentaries on whether the reform initiatives of the government have percolated to the ground level. That will be an important trigger for the markets to sustain and move higher from the current levels.”