New Delhi: Investor wealth further grew over Rs 3 lakh crore in morning trade on Tuesday as market continued to remain euphoric a day after the Union Budget, which analysts termed as unprecedented against the backdrop of the pandemic-induced slowdown.
The BSE benchmark zoomed 1,553.87 points to 50,154.48 during the morning trade.
Tracking the extremely positive investor sentiment, the market capitalisation of BSE-listed companies jumped Rs 3,04,169.3 crore to Rs 1,95,50,883 crore in morning trade.
“It has been a picture perfect rally in the last two sessions with the broader indices clocking record Budget Day gains and extending them today as well. Although some profit-booking can be expected, but we expect stock-specific action to continue,” said Rahul Sharma, Head – Technical & Derivatives Research, JM Financial Services.
Cheering the Budget proposals, the BSE benchmark Sensex zoomed 2,314.84 points or 5 per cent to close at 48,600.61 Monday. Investors became richer by over Rs 6.34 lakh crore Monday as markets gave a big shout-out to the Budget 2021-22.
This was the best Budget-day gain for the markets since 1997, analysts said.
The Union Budget FY22 did not allow a good crisis to go to waste, Anand Rathi said in a research note.
“Making up for the lack of a decisive fiscal stimulus in 2020, the Budget has simultaneously rolled out uncluttered measures to stimulate investment, especially in infrastructure, healthcare, financial and select manufacturing sectors, and signalled progressive withdrawal of government from commercial activities.
“The Budget is positive for the Indian equity market and could be neutral for the debt market if tactically implemented,” it said.
According to Jaideep Hansraj, MD and CEO, Kotak Securities, it has been a great Budget in the current pandemic. Market has given a clear thumbs-up.
“No tinkering on taxes, including personal tax and a giant leap of divesting two state-run banks and opening up of market by making way for the LIC IPO and foreign ownership in insurance companies has been a welcome move and the primary reason for the rise in stock market,” he stated.
The FM presented an unprecedented Budget against the backdrop of a pandemic induced economic slowdown. The Budget was very progressive in proposing a sharp uptick in government expenditure to boost economic growth, said Ajay Menon, MD and CEO, Motilal Oswal Financial Services (Broking and Distribution).
PTI
