A day after Union Budget 2016-17 was announced, the 30-scrip Sensitive Index (Sensex), on Tuesday surged up 777.35 points and closed at 23,779.35. National Stock Exchange (NSE) also gained more than 3%.The rupee rallied, rising to 67.86 per dollar, while bond yields inched lower for third consecutive day.
A commitment by Finance Minister Arun Jaitley on his budget to meet the fiscal deficit target of 3.5 percent of the gross domestic product is also raising hopes it would raise confidence among foreign investors after heavy selling this year. Traders expressed hope the RBI may step in to cut the repo rate even before its next scheduled policy review on April 5 given the central bank had pinned any further easing on the government’s fiscal stance at its policy review last month.
Most Gained Stocks
All bank stocks gained, ICICI BankBSE 5.51 % as much as 8 per cent, Axis BankBSE 4.71 % 4.5 per cent, State Bank of India 2.5 per cent and HDFC Bank 1.28 per cent. Other rate-sensitive stocks also gained; Maruti rose 7.8 per cent, Tata MotorsBSE 2.28 % 5 per cent, Bajaj Auto 3 per cent, M&M 2.5 per cent and HDFC 1 per cent.
UltraTech Cement gained 1% to Rs. 2,795 on BSE. The company will acquire Jaiprakash Associates’ cement factories in six states for an enterprise value of Rs. 16,500 crore, among the biggest distress sales of assets as India’s banks get proactive on bad loans.
ITC was the top Sensex gainer, the stock closed 9.1 per cent higher at Rs. 325.10. Infosys, TCS, Larsen & Toubro, Maruti Suzuki, Tata Motors, Axis Bank and Reliance Industries also ended higher supporting gains in the benchmark indices.
Sensex is gaining today also. In the last report, Sensex is trading at 24180.50, up by 401 points. NSE NIFTY is up by 138 points and is trading at 7360.30.