The Budget-fuelled rally continued on Dalal Street for the third consecutive session on Wednesday as the sensex added another 458 points to close at 50,256 points, its first-ever close above the 50k mark. Earlier on January 21, and then on February 2, the sensex had risen above 50k in intra-day trades but closed below that level. On the NSE, the nifty closed 142 points or 1% up at 14,790.
Since Budget day, the sensex has gained nearly 4,000 points (8.6%) in three sessions, boosted by the commentaries by analysts and economists who feel that the FM’s proposals are growth oriented. The rally has also been supported by foreign fund buying with net investments now nearly Rs.11,200 crore or about $1.5 billion.
The strong upsurge in the market also made investors richer by about Rs.12.3 lakh crore on Wednesday with BSE’s market capitalisation now at Rs.198.2 lakh crore. This is also the highest level that India’s mcap value has ever been, BSE data showed.
According to a note by Vinod Nair, head of research, Geojit Financial Services, the market has set a renewed focus on segments that are likely to be mostly benefited by a sustainable revamp in the domestic economy. “The broader market is outrunning the benchmark, with pharma, infra and PSU banks as leaders. Positive quarterly earnings are leading to a large upgrade in earnings forecast, which is also acting as a key tailwind,” Nair said.