The Sensex jumped 1197 points to 49798

(Gujarat News Correspondent) Mumbai, Ta. 02 February 2021, Tuesday

In the budget for the next financial year, Finance Minister Nirmala Sitaram has announced development measures without raising taxes. Most analysts have welcomed the budget. Incentives have been provided in the budget for infrastructure development, capital expenditure, healthcare sector and banking sector. Bank stocks led the rally for the second day in a row as a result of measures taken by the country's public sector banks to ease the burden of provisioning and increase in capital expenditure. Even on the second day after the budget, the benchmark BSE Sensex closed at 114 points. The Sensex touched an intra-day high of 30,000 today. The Sensex opened with a gap today compared to yesterday's close. At the bottom, it was 313.8, while at the top, it was 2017.8. The NSE Nifty 50 also jumped 4.5 points to close at 12.5. The Nifty 30 closed at a low of 19.15 and a high of 161.30. Bank stocks and cement stocks were buzzing. Midcap stocks also maintained strong momentum. On the BSE, 17 stocks rose while 114 declined. 16 shares remained unchanged. The market cap of companies listed on the BSE has risen to Rs 12.5 lakh crore. On the second day of the budget, investors' wealth has increased by Rs 2.15 lakh crore. However, concerns have been raised by some rating agencies over the high fiscal deficit estimates.

Bank stocks soar: Federal Bank, SBI, HDFC Bank, RBL Bank, ICICI Bank attract

As a result of the proposal to set up a bad bank, banks will no longer need to make provision for bad loans, which is expected to ease the pressure on their books, with institutional investors buying bank shares. Bank shares have also been attractive due to the proposal to privatize two public sector banks. SBI had gained Rs 2.50 to close at Rs 3.10. HDFC Bank's share price rose by Rs 2.50 to Rs 190.6 and Federal Bank's by Rs 2.08 to close at Rs 70.8. RBL Bank was up Rs 4.5 at Rs 2.50. ICICI Bank closed at Rs 313.9, up Rs 14.5. The December quarter results also show that banks' asset quality is improving.

Cement stocks surged following the highest allocation in capital expenditure in the last ten years

In the budget for the next financial year, the money allocated to the finance minister for capital expenditure is the highest in the last one decade. In the current budget, 12.51 per cent of the budget has been allocated for capital expenditure as compared to 12.5 per cent last year.

Capital costs include the cost of erecting buildings for road and health services. The share of capital expenditure in the total budget has been declining in recent years.

Along with the government, private sector capital expenditure is also expected to increase. Private sector companies plan to increase their capacity in the face of low interest rates. Cement stocks were attracted by more allocation for capital expenditure. Shree Cement rose by Rs 13.5 to close at Rs 4.5. Ultratech Cement rose by Rs 2.50 to close at Rs 313.5. ACC was up by Rs 2.50 to Rs 19.5. Ambuja Cements rose by Rs 13.5 to close at Rs 4.5.

Nifty IT index rises 3 points: Info Edge, HCL Tech, TCS, Mphasis rise

Following the easing of visa policy by the new US administration, the share price of IT services companies has been attractive. HCL Tech was up by Rs 2.50 to close at Rs 4.5. TCS rose by Rs 2.10 to close at Rs 206.5. Tech Mahindra rose by Rs 13.5 to close at Rs 3.50. Wipro was up Rs 4.5 at Rs 4.5. Before the board meeting on February 15, Info Edge had risen by Rs 311.50 to close at Rs 71.50. There were reports of new H-1B clearance rates for Indian IT companies rising between July and September.

Auto stocks attract after announcement of January auto sales figures: Tata Motors, Ashok Leyland, TVS Motor surge

Shares of the auto company remained attractive after the January auto sales figure was released. Tata Motors' sales grew by 3% in January to 8 vehicles. Shares of the company remained strong after the company's quarterly results came in as expected. Ashok Leyland's share price rose to a 52-week high on the back of a January sell-off. The company's sales in January rose by 11 per cent to 1,612 units. TVS Motors rose by Rs 2.50 to close at Rs 70.50. Mahindra & Mahindra rose by Rs 41.50 to close at Rs 214.5. The vehicle scrapage policy is expected to boost auto sales, especially for commercial vehicles.

Rapid improvement in pharma stocks as the budget behind the healthcare sector rises

In the wake of the Corona epidemic, the finance minister has made a huge allocation to the budget for his healthcare sector as part of improving the country's healthcare sector. Pharma stocks have been the attraction of this allocation, which is expected to benefit companies operating in the healthcare sector.

Lupine rose by Rs 2.10 to Rs 105.50. Sun Pharma's share price rose by Rs 19.50 to close at Rs 303.5. Kadila Health was up by Rs 11.50 to Rs 4.50. Cipla rose by Rs 12.50 to close at Rs 71.50. Dr. Reddy's Labs was up Rs 4.5 at Rs 2.50. Aurobindo's share price remained stable.