Indian share market today shrugged off the Budget worries, with benchmarks indices BSE Sensex and NSE Nifty recovering all the losses and surgeing past the pre-Budget levels at the day's close. Sensex rose 917 points or 2.30 per cent to end at 40,789.
Indian share market today shrugged off the Budget worries, with benchmarks indices BSE Sensex and NSE Nifty recovering all the losses and surging past the pre-Budget levels at the day’s close. Sensex rose 917 points or 2.30 per cent to end at 40,789; while Nifty surged 271 points or 2.32 per cent points to 11,979. “With the Budget overhang gone, investors are breathing a sigh of relief and are back to make fresh calls. Additionally, January auto sales numbers were comparatively decent and with no other negative news, the Indian bourses saw a sudden rally today,” said Umesh Mehta, Head of Research, Samco Securities. 28 of the 30 Sensex stocks ended the day in green with Titan making gains of 7.61 per cent on the back of strong Q3 performance, ITC gained after dropping down significantly yesterday. All sectoral indices on Nifty gained during the day’s trade.
Here’s all that helped markets beat the budget blues:
Global indices beat Coronavirus fears: Global markets regained value after a fall in the previous session. Dow ended Monday rising 0.5 per cent, S&P 500 gained 0.7 per cent and Nasdaq gained 1.3 per cent. Chinese markets too were able to stabalise, after falling during the previous session, to some extent as officials tried to calm fears of Coronavirus. The Shanghai Composite was up 1.3 per cent, The Shenzhen Component Index jumped 3.17%. Meanwhile, Japan’s Nikkei 225 gained 0.5 per cent.
Crude Oil prices continue to help: Crude oil prices dropped during early trade and helped Indian markets. India imports around 80 per cent of its crude oil needs. “The Indian markets witnessed a sharp surge in today’s session led by positive global cues and declining oil prices. We believe post budget, the focus is now shifting towards macros and earnings,” said Ajit Mishra, VP Research, Religare Broking Ltd.
Sectoral indices record healthy gains: All the sectoral indices recorded healthy gains with Oil & Gas, Metals and Consumer Durables recording the highest gains in the range of 3.1-3.5%. “Stock markets appear to have shrugged off disappointment stemming from a lack of substantial stimulus measures in the Union Budget,” said S Hariharan, Head Sales Trading, Emkay Global Financial Services.
Rupee gains: Rupee gained against the dollar to trade at a price of $71.27.
28 out of 30 stocks in green: 28 of the 30 stocks on Sensex ended the day in green, with Tital leading the pack at the end of trade on the back of a strong Q3 performance. ITC too made gains today after losing ground on Monday. Among the losers were Hindustan Unilever and Bajaj Auto.