Indian equities gained the most on a budget day since 1997 after Finance Minister Nirmala Sitharaman refrained from announcing any major tax hikes.
The S&P BSE Sensex ended 5% higher at 48,600 while the NSE Nifty 50 index gained 4.7% to end at 14,281. Both the indices had gained of over 6% each on budget day in 1997.
Monday's gains were also the biggest for the Sensex and the Nifty since April last year, and erased more than 60% of their six-day fall ahead of the budget. Since hitting their all-time highs on Jan. 21, the Sensex declined around 4,000 points while the Nifty fell more than 1,100 points.
“Growth oriented budget will support equity markets. Asset monetisation, strategic divestment, auto scrappage policy are positive for market,” Nilesh Shah of Kotak Mahindra AMC was quoted as saying in a statement. “The budget has laid foundation for growth beyond FY 22 through selective protection to domestic industry and encouragement via PLI scheme.”
All sectoral indices other than the Nifty Pharma ended with gains on Feb. 1. The Nifty Bank gained over 2,500 points, or 8.3%—also its best single-day advance since April last year.
“The way the banking index moved on the budget day, we feel it could lead the next leg of the rally alongside infra counters,” Ajit Mishra of Religare Broking was quoted as saying in a statement.
