Markets give thumbs up to Budget 2021: Sensex zooms 2,315 points; Nifty settles above 14,250

NEW DELHI: Equity indices cheered the announcements made by finance minister in Union Budget 2021 with the benchmark BSE sensex jumping over 2,300 points led by gains in banking, financial stocks.
The 30-share BSE sensex rose 2,315 points or 5 per cent to close at 48,601; while the broader NSE Nifty settled 647 points or 4.74 per cent higher at 14,281.
IndusInd Bank, ICICI Bank, Bajaj Finsev, SBI, L&T and HDFC were the top gainers in the sensex pack rising as much as 15.16 per cent.
While Dr Reddy, Tech Mahindra and HUL were the only losers falling up to 3.62 per cent.
On the NSE platform, sub-indices Nifty Bank, Private Bank, and Finacial Services gained up to 8.26 per cent.
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This is the fourth time in last 10 years that the markets have closed in positive territory after the budget proposals.

Nirmala Sitharaman announced a slew of measures to revive the pandemic-hit economy and higher capital expenditure.
Some of the measures proposed include doubling healthcare spending, a vehicle scrappage policy, recapitalisation of public-sector banks and divestment of some state-owned lenders, aiming to bolster an economy that plunged into its deepest recorded slump amid the virus outbreak.
A "substantially higher-than-expected" expenditure pushed fiscal deficit for fiscal 2021 and 2022 well above projections, Aditi Nayar, principal economist at rating agency ICRA told news agency Reuters, adding that yields were expected to sustain a hardening bias, in the absence of frequent open market operations.
To push growth via infrastructure creation, Sitharaman proposed raising the government's capital expenditure for FY 2021-22 by 34.5 per cent to Rs 5.5 lakh crore.
Sitharaman also said the government would infuse Rs 20,000 crore into public sector banks (PSBs) in 2021-22, to meet the regulatory norms.

For the current financial year also, the government had made a provision of Rs 20,000 crore for recapitalisation.
"The budget has ticked the boxes on the growth side, with infra capex increase of around 34% on a year-on-year basis, which is a very healthy sign, a good roadmap on divestment and monetisation of assets of state owned enterprises," Rupen Rajguru, head of equity investment and strategy, Julius Baer India told Reuters.
Meanwhile, foreign portfolio investors (FPI) have remained net buyers to the tune of Rs 14,649 crore in Indian markets in January, amid availability of global liquidity and emerging markets being a preferred destination for foreign funds.
According to FPI statistics available with depositories, overseas investors pumped in a net of Rs 19,473 crore into equities but pulled out Rs 4,824 crore from the debt segment between January 1 and January 29.
(With inputs from agencies)