BSE benchmark Sensex zoomed over 2,000 points after the Union Budget was announced by Finance Minister Nirmala Sitharaman, and the NSE Nifty reclaimed the 14,000 mark. At the time of writing, the Sensex was up 2,059.89 or 4.45% at 48,345.66, and Nifty was up 553.45 points (4.06%) at 14,182.85.
This surge was driven by gains in financial and banking stocks on Monday, after analysts said that the Budget is a "growth-oriented" effort. Finance Minister Nirmala Sitharaman announced that two public sector banks will be privatised apart from the IDBI Bank, and one general insurance company.
On the Sensex chart, IndusInd Bank was the top gainer, rallying over 11%, followed by ICICI Bank, SBI, HDFC, M&M and Axis Bank. On the other hand, Dr Reddy's, Tech Mahindra and TCS were among the laggards.
"This is indeed a bold growth-oriented budget. Absence of the much-feared COVID tax and the surcharges on Income Tax is a great relief. Privatisation of two nationalised banks and proposal of monetisation of assets like land are clear positives," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
FDI on insurance was also raised to 74% from 49% in the Budget.
"Raising FDI in insurance from 49% to 74% is welcome. Market response to the budget reflects growth optimism. In brief, the FM has presented a pragmatic, bold and visionary budget in these difficult times," he added.
According to Lav Chaturvedi, ED and CEO, Reliance Securities, the single securities market code announced in the Budget speech will bring out ease of doing business in Indian financial markets.
This, along with the FDI regime and development financial institution, will be transforming for financial markets, he said.
The government also announced plans to establish a bad bank for management and monetisation of stressed assets. Giving a major push to infrastructure development, the Finance Minister announced to set up a Development Finance Institution (DFI) with a capital of Rs 20,000 crore.
With inputs from agencies