Sensex dons best B-day suit, posts 2nd-highest rise ever of 2,315 points – Times of India


NW DELHI: A growth-oriented Budget amid a pandemic-triggered crisis led to a renewed bull rally on Dalal Street on Monday with the sensex rising 2,315 points, its biggest Budget-day gain and the second best upsurge ever. The ascent also made investors richer by Rs 6.3 lakh crore, with BSE’s market capitalisation at Rs 192.2 lakh crore.
With banks and financial stocks leading the surge, the sensex closed 5% up at 48,601 while the Nifty was up 647 points, or 4.7%, at 14,281. It was the Nifty’s third biggest single-session gain and the biggest on a Budget day.
In the days leading up to the Budget, given the precarious condition of government finances, market players were expecting the finance minister to hike some taxes and cess, or burden citizens and corporate entities in some way to garner higher revenues. The absence of any such proposal, combined with the government’s strong push for infrastructure spending that could possibly generate more employment, led to the rush for stocks.
Brokers and analysts also said that several other market-friendly proposals by the FM have the potential to bring in positive changes in the market over the long run. These include consolidation of several securities laws into one unified securities market code, divestments of two banks and an insurance company, and setting up an assets management company to handle bad loans.
India could see Rs 20,000-25,000 crore investments by MNCs in desi firms in 2-3 years as an outcome of the decision to hike FDI in insurance from 49% to 74%. Experts say the call came a little late, but some Japanese and German firms are keen to raise their stakes.



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