Sensex rallies 848 pts, Nifty above 17,500 on Budget day

Tata Steel was the top gainer in the Sensex pack, zooming 7.57%, followed by Sun Pharma, IndusInd Bank, L&T, UltraCement, ITC and HCL Tech

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% higher at 58,862.57. Likewise, the NSE Nifty surged 237 points or 1.37% to end at 17,576.85.

Tata Steel was the top gainer in the Sensex pack, zooming 7.57%, 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 ₹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% jump in capital expenditure to ₹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 is growth-inducing and does the heavy lifting by sharply increasing capital expenditure, said Dhiraj Relli, MD & CEO, HDFC Securities.

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% to $89.05 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out ₹3,624.48 crore Monday, as per provisional data.

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