Budget Day: Sensex rallies 848 pts, Nifty above 17,500
As the Budget got announced, the BSE Sensex jumped over 848 points on Tuesday, tracking heavy buying in metal and capital goods stocks, as investors cheered the big infrastructure boost provided in the Budget presented by Finance Minister Nirmala Sitharaman.
Firm global cues also supported the rally in domestic equities, traders said.
After touching an intra-day high of 59,032.20, the 30-share BSE index closed 848.40 points or 1.46 per cent higher at 58,862.57. Likewise, the NSE Nifty surged 237 points or 1.37 per cent to end at 17,576.85.
Tata Steel was the top gainer in the Sensex pack, zooming 7.57 per cent, followed by Sun Pharma, IndusInd Bank, L&T, UltraCement, ITC and HCL Tech.
On the other hand, M&M, PowerGrid, SBI, Bharti Airtel, NTPC, Maruti and Reliance closed in the red.
Sitharaman on Tuesday unveiled a bigger Rs 39.45 lakh crore Budget, with higher spending on highways to affordable housing with a view to fire up the key engines of the economy to sustain a world-beating recovery from the pandemic.
Her Budget for the fiscal year beginning April 2022 proposed a massive 35 per cent jump in capital expenditure to Rs 7.5 lakh crore, coupled with the rationalisation of customs duty, an extension of time for setting up new manufacturing companies and plans for starting a digital currency and tax crypto assets.
“The Budget of 2022 is very balanced and continues the incremental growth-oriented approach of the last budget.
“In this budget, the finance minister provided a springboard for an investment cycle with the highest ever share of capex, focus on the development of national manufacturing capabilities and clean energy, tax rationalisation with no new taxes while maintaining its continuous growth focus on Aatmanirbhar Bharat,” Ashishkumar Chauhan, MD and CEO, BSE, said.
The Budget is growth-inducing and does the heavy lifting by sharply increasing capital expenditure, said Dhiraj Relli, MD & CEO, HDFC Securities.
The focus on boosting manufacturing as well as an underlined emphasis on areas such as startups, modern mobility and clean energy, shows the finance minister has prioritised long-term growth, he added.
Elsewhere in Asia, bourses in Hong Kong and Tokyo finished with gains. Markets in China and South Korea were closed for a holiday.
Stock exchanges in Europe were trading on a firm note in mid-session deals.
Meanwhile, international oil benchmark Brent crude slipped 0.24 per cent to USD 89.05 per barrel.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 3,624.48 crore Monday, as per provisional data.
Article Proofread & Published by Gauri Malhotra.