Sensex, Nifty post biggest Budget day gains on Monday; here’s what analysts make of today’s trade

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Updated: February 01, 2021 4:14 PM

BSE Sensex and Nifty 50 surged 5 per cent, posting the biggest Budget day gains in absolute terms on Monday.

Sensex, Nifty, stock market, Union Budget 2021The Union Budget 2021 is a boon for the equity market with all the essential aspects of growth supported by an increase in government spending without an increase in indirect taxes, an analyst said. Image: Reuters

BSE Sensex and Nifty 50 surged 5 per cent, posting the biggest Budget day gains in absolute terms on Monday. The total market capitalisation of the BSE-listed firms surged Rs 6.4 lakh crore to Rs 192.53 lakh crore. Earlier, on Friday at closing, the total market cap stood at Rs 186.12 lakh crore. Sensex surged 2,315 points or 5 per cent to 48,600.61, while Nifty 50 ended at 14,281, up 646 points or 4.74 per cent. During intraday deals, Sensex hit a high of 48,764, while Nifty touched 14,336.35. Market breadth remained in favor of bulls, as 1,943 stocks advanced, and 990 scrips declined. While 196 shares remained unchanged. The broader market indices underperformed the equity benchmarks. S&P BSE Midcap rose 3.03 per cent or 548 points to 18,630, while S&P BSE SmallCap index jumped 2.03 per cent or 365.12 points to end at 18.353.32.

Vinod Nair, Head of Research at Geojit Financial Services

The Union Budget 2021 is a boon for the equity market with all the essential aspects of growth supported by an increase in government spending without an increase in indirect taxes. Proposal for the privatisation of 2 PSU banks and measures to curb the impact of NPAs helped the banking index to lead the soaring rally. Higher government spending in Infrastructure and increased FDI limit in Insurance improved the overall outlook of these sectors. Although Cess can have a marginal impact on the related sectors, the budget provides incentives to generate wealth in the economy without providing a high burden on households and private sectors.

Rohit Singre, Senior Technical Analyst at LKP Securities

Super positive session is witnessed on Indian bourses, both nifty and bank nifty has shown a strong move and closed a day with gains of 5 & 8 per cent respectively. Strong breakout is witnessed in the nifty bank even nifty has seen small falling trend line breakout, going forward immediate support is formed near 14200-14070 zone holding above said levels we may see pull back to continue and resistance is placed at 14400-14500 zone.

Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking)

BANKNIFTY has been bucking the trend since last couple of sessions, while the broader market was correcting brutally. This outperformance has now turned into a leadership and hence, staying beyond 33000, unfolds fresh leg of the rally for the banking index. Above this, next levels to watch would be 34500-35000.

Ashis Biswas, Head of Research at CapitalVia Global Research Limited

The market witnessed positivity since the beginning of the session. Following the budget, market has seen a decisive positive movement. Market closing above 14200 will be decisive. 14170-14200 will be an important support zone, while 14600 will be the next resistance the market will remain positive in the near future.

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