Investor Wealth Rises Over Rs 10.48 Lakh Crore In Two Days Of Budget-Driven Rally
Investor wealth rose by over Rs 10.48 lakh crore in two days as budget-driven market euphoria continued to charge bulls on Tuesday.
The BSE Sensex jumped 1,197.11 points or 2.46% to close at 49,797.72 on Tuesday. During the day, it rose 1,553.87 points to 50,154.48.
Tracking the extremely positive investor sentiment, the market capitalisation of BSE-listed companies jumped Rs 10.48 lakh crore to Rs 196.6 lakh crore crore in two days of market rally.
On Tuesday, the m-cap of BSE-listed companies advanced by Rs 4.14 lakh crore. Investors became richer by over Rs 6.34 lakh crore on Monday as markets gave a big shout-out to the Budget 2021-22.
Cheering the Budget proposals, the BSE benchmark Sensex zoomed 2,314.84 points or 5% to close at 48,600.61 on Monday.
This was the best Budget-day gain for the markets since 1997, analysts said.
"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 and Derivatives Research, JM Financial Services.
On Tuesday, at the BSE 1,755 companies advanced, while 1,184 declined and 175 remained unchanged.
According to Jaideep Hansraj, MD and CEO, Kotak Securities, it has been a great Budget in the current pandemic. The market has given a clear thumbs-up, he said. "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 the stock market."
State Bank of India was the biggest gainer on the Sensex chart on Tuesday, rising up 7.1%, followed by UltraTech Cement Ltd., HDFC Bank Ltd., Larsen & Toubro Ltd. and Bharti Airtel Ltd.
The finance minister 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).
In the broader market the BSE midcap and smallcap index gained up to 2.26%.
All sectoral indices also closed on a positive note.