Market wrap: Bulls cheer Budget 2022; Sensex, Nifty end 1.4% higher
business-standard.comTop headlines · Bulls cheer Budget 2022; Sensex ends 848 pts higher, Nifty above 17,550
Moreover, analysts said the Budget continued the focus on quality expenditure. And, the capex increase of 35 per cent – in key sectors like Infra, housing, defence, railways and agriculture – could have a multiplier effect on the economy.
According to Vinod Nair, Head of Research at Geojit Financial Services, this Budget is expected to support growth in the long term, but high capex, fiscal deficit and borrowing plans against the backdrop of rising inflation, oil prices and interest rates could be some challenges in the short to medium term.
Equity markets logged strong gains after taking a sharp dip mid-way but recovered soon after. The S&P BSE Sensex jumped over 1,000 points to hit its intra-day high level but eventually ended 848 points higher at 58,863. The Nifty50 followed a similar trajectory and rose 367 points intra-day before it closed at 17,577, up 237 points.
Tata Steel, Sun Pharma, IndusInd Bank, L&T, Ultratech Cement, ITC, Titan and HCL Tech were the top gainers, while M&M, Bharti Airtel, SBI, PowerGrid and NTPC were top laggards.
In the broader markets, the BSE MidCap and SmallCap indices ended 1 per cent and 0.9 per cent higher, respectively. The volatility index, India VIX, cooled off 9 per cent to end below the 20 mark.
Sectorally, the Nifty PSU Bank index ended in the red, down 0.6 per cent, as the Budget document remained silent on PSB privatisation. The Nifty Auto index and the Oil & Gas index were other losers, closing 0.7 per cent down each.
On the upside, the Nifty Metal index zoomed nearly 5 per cent after the government announced its Rs 7.5-trillion capex plan for 2022-23. It also proposed to extend the
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