As Sitharaman unveils Budget 2021, markets zoom; Sensex gains 4%, Nifty reclaims 14K-mark

Markets witnessed a spike as Finance Minister Nirmala Sitharaman announced the Budget for 2021 in the Parliament on Monday. The Bombay Stock Exchange benchmark Sensex witnessed a spike of over 4 percent, crossing the 48,000-point mark. Same was the case with the National Stock Exchange Nifty that experienced a growth of 3 percent after the Budget.   

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Markets zoom on Finance Minister Sitharaman's budget 

The numerous announcements made by Sitharaman kept the Sensex soaring at a steady pace throughout the speech. As Sitharaman concluded her speech, the market witnessed a prominent jump, rising by almost 1,700 points. Starting at 46,875. 41 points at 11 AM when the leader started her speech, it reached 48,188.30 at a growth of 4.11 percent.

On the other hand, Nifty reclaimed the 14,000-level surge by over 500 points. It was up by 3.88 percent at the time of publishing the story, at 14,163.55 points.   

The market sentiment had been evident even before FM Sitharaman read out her speech as the BSE Sensex had rallied by 443 points and the NSE Nifty advanced by 115 points in the opening trade on Monday.

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This was after the markets had closed 588.59 points or 1.26 percent lower on Friday at 46,285.77, and the Nifty had dropped by 182.95 points or 1.32 percent down at 13,634.60.

However, on Monday, the Sensex gained significantly with IndusInd Bank being top gainer with gains of 11 percent, while ICICI Bank, SBI, HDFC, M&M and Axis Bank were the other gainers. Dr Reddy’s, Tech Mahindra and TCS were the companies that witnessed a drop.

'Growth-oriented' was one of the names for Sitharaman's Budget as it became a talking point on the markets and social media.  

"This is indeed a bold growth-oriented budget. The absence of the much-feared Covid tax and the surcharges on Income Tax is a great relief. Privatisation of two nationalised banks and proposal of monetisation of assets like land are clear positives," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services was quoted as saying by PTI. 

"Raising FDI in insurance from 49 percent to 74 percent is welcome. Market response to the budget reflects growth optimism. In brief, the FM has presented a pragmatic, bold and visionary budget in these difficult times," he added.

As per  Lav Chaturvedi, ED and CEO, at Reliance Securities, the single securities market code announced in the Budget will contribute to ease of doing business in Indian financial markets. He added that this factor alongside regime and development financial institutions could be 'transforming' for financial markets.

(With PTI inputs)

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