Sensex, Nifty back in green

The Bombay Stock Exchange benchmark Sensex surged by over 200 points in early trade on heavy buying and short-covering by speculators today, a day after the index saw this year's biggest one-session drop as the Budget fell short of market expectations.N Madhavan on impact of budget on sensex

The Bombay Stock Exchange benchmark Sensex surged by over 200 points in early trade on heavy buying and short-covering by speculators today, a day after the index saw this year's biggest one-session drop as the Budget fell short of market expectations.

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The 30-share index was quoted at 14,251.88 points, a gain of 208.48 points, or 1.48 per cent, over the previous close.

The wide-based National Stock Exchange's Nifty gained 66.10 points, or 1.58 per cent, at 4,231.80 points.

Marketmen said emergence of buying at prevailing lower levels by funds along with covering-up of pending short positions by speculators, led to a sharp recovery in stocks.

The BSE barometer had plunged by nearly 870 points in the previous trading after the Budget presented by Finance Minister Pranab Mukherjee disappointed the markets due to absence of big-bang reforms.

The major gainers which supported the Sensex were ITC Ltd by 4.04 per cent to Rs 205.80, ICICI Bank by 3.39 per cent to Rs 701, Larsen and Toubbro 3.70 per cent to Rs 1,518.20, Maruti Suzuki by 4.15 per cent to Rs 1,078, Reliance Infra by 3.20 per cent to Rs 1,167.25 and Tata Steel by 1.12 per cent to Rs 400.90.