NEW DELHI: Equity indices surged higher on Tuesday with the benchmark BSE sensex rising nearly 1,200 points as investors gave a big thumbs-up to finance minister Nirmala Sitharaman’s Union Budget proposals.
The 30-share BSE sensex rose 1,197 points or 2.46 per cent to close at record peak of 49,798; while the broader NSE Nifty settled 367 points or 2.57 per cent higher at 14,648.
Top gainers in the BSE pack included Ultra Cemco, SBI, HDFC Bank, L&T, Bharti Airtel, Kotak Bank and Maruti rising as much as 7.10 per cent.
While Bajaj Finserv, Titan and HUL were the only losers falling up to 1.96 per cent.
On the NSE platform, all the sub-indices finished in green with Nifty Auto, Realty, Bank gaining as much as 4.01 per cent.
The Union Budget 2021 provided a boost to healthcare spending by 135 per cent, lifted caps on foreign investment in its vast insurance market, and increased capital expenditure for 2021-2022 by 35 per cent.
According to economists and market analysts, it is a bold growth-oriented budget and absence of the much-feared Covid tax and the surcharges on income tax is a great relief.
“It is a reaction to the budget as well as short-covering. This will be there for a few days and we should be cautious at the current level” AK Prabhakar, head of research at IDBI Capital in Mumbai told news agency Reuters.
“We have rallied almost 1,000 points for the budget. Whatever proposals were given, have been planned for one or two years. Nothing is going to happen tomorrow and valuations are already stretched,” Prabhakar added.
Meanwhile, foreign portfolio investors (FPIs) purchased shares worth a net Rs 1,494.23 crore on Monday, according to exchange data.
(With inputs from agencies)