Budget boosts bourses, Sensex rises over 1,400 points

On Tuesday, FIIs were net buyers to the tune of Rs 1,494.23 crore in BSE, NSE and MSEI in the capital market segment.

Accordingly, the markets had a gap-up opening and then remained in a narrow range through the day. Notably, the Sensex reclaimed the 50,000 mark in the initial hour of the rally. But a bout of profit booking dampened sentiments.

Globally, Asian stocks rose on Tuesday as signs of progress in US stimulus talks boosted Wall Street overnight. Subsequently, an upbeat mood from Asian markets spilt over to Europe in early trade.

On the domestic front, budget announcements as well as positive macro data bolstered sentiments. Among domestic sectors, banks, realty, media, auto and infrastructure gained the most.

Banking stocks surged after the Finance Minister on Monday announced that two public sector banks will be privatised apart from the IDBI Bank in the upcoming financial year.

Consequently, the Sensex closed at 49,797.72, higher by 1,197.11 points, or 2.46 per cent, from its previous close. Similarly, the NSE Nifty50 also made healthy gains. It ended the day's trade at 14,647.85, higher by 366.65 points, or 2.57 per cent, from its previous close.

"Nifty rose to just shy of the previous all time high of 14754, by making an intraday high of 14,732 on Feb 2," said Deepak Jasani- Head of Retail Research at HDFC Securities.

"A move above 14,754 is essential to convince more buyers to buy now or on the next dip. Volumes and sentiments currently favour this happening." (IANS)