Investors gain Rs 3.57 trn in 2 days of market rally after Budget-day fall

Investors' wealth increased Rs 3.57 lakh crore in two days of market rally where the Sensex zoomed 917 points on Tuesday in a broad-based recovery after the Budget-day fall.

The 30-share BSE Sensex settled 917.07 points, or 2.30 per cent, higher at 40,789.38 on Tuesday. It hit an intra-day high of 40,818.94.

On Monday, the index had gained 136.78 points.

Recovery in the market led to a rise in market capitalisation of the BSE-listed firms which climbed Rs 3,57,044.43 crore to Rs 1,56,61,769.40 crore since Saturday.

The 30-share BSE key index had ended 987.96 points, or 2.43 per cent, lower at 39,735.53 on the Budget day.

"Indian bourses tanked on Saturday after the Budget disappointed the Street's expectations. This was a knee-jerk reaction but as investors realised that the Budget will aid in the long-term growth of the economy, the market picked up. With the Budget overhang gone, investors are breathing a sigh of relief and are back to make fresh calls. Additionally," Umesh Mehta, Head of Research, Samco Securities said.

Mehta also said January auto sales numbers were comparatively decent and with no other negative news, the Indian bourses saw a sudden rally on Tuesday.

Religare Broking Vice-President (Research) Ajit Mishra said, "Indian markets witnessed a sharp surge in today's session led by positive global cues and declining oil prices."

From the 30-share BSE Sensex pack, 28 companies closed with gains led by Titan Company, ITC, HDFC and Bajaj Finance.

On the BSE, 1,618 scrips advanced, while 885 declined and 181 remained unchanged.

In the broader market, the S&P BSE Midcap Index gained 1.37 per cent and Smallcap rose 1.29 per cent.

Vikas Jain, senior research analyst, Reliance Securities, said: "Positive global market also led to the upward momentum."

Bourses in Shanghai, Hong Kong, Tokyo and Seoul settled with firm gains. Stock exchanges in Europe also opened on a positive note.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel