Post-budget rally has Sensex at 2-month high, Nifty above 5K
The markets roared to a more than two-month high today, led by an over twelve per cent surge in Tata Motors, pushing the bellwether Sensex up over 340 points and the Nifty above the psychological 5,000-mark.business Updated: Mar 02, 2010 18:10 IST
The markets roared to a more than two-month high on Tuesday, led by an over twelve per cent surge in Tata Motors, pushing the bellwether Sensex up over 340 points and the Nifty above the psychological 5,000-mark.
Buoyed by the feel-good factor in the Budget amid a jump in exports and manufacturing numbers, foreign funds were in full strength and lapped up shares in the auto, metals, banks and FMCG counters like hot cakes.
The biggest gainer of the day was Tata Motors which hit a nine-month high zooming 12.10pc, after Moodys upgraded it following the turnaround of its luxe marque JLR. Tata Steel was the second best performer gaining 6.18pc. The BSE auto index charged the Sensex rally gaining 4.29pc, with M&M also supporting with a 4.65pc jump.
After a gap-up opening of 243 points, the BSE barometer zoomed to a high of 2.3pc or 372.05 points to 16,801.60 at the fag-end, recording its best-ever single day rally since December 23, but settled the day a tad down at 16,772.56 points or 343.01 points, clocking a net gain of 2.09pc.
Similarly, the 50-share NSE Nifty surged by 94.70 points or 1.92pc to close above 5,000-mark at 5,017. The index zoomed past 74 points in opening deals and touched high of 5,026.95.
CNI Research chairman Kishor Ostwal said," its post-budget rally as the budget has given the direction to the market."
The market also got support from growth in exports for the third straight month in January at 11.5 per cent.
Marektmen said changes in income tax slabs, which would give more disposable incomes in the hand of individuals and reduced surcharge on corporate tax boosted market sentiment.