For the third week, the Budget-led rally on Dalal Street is ongoing as on Monday incessant buying led by foreign funds took the Sensex past the 52,000 breakthrough. The index began the discussion at 51,908 points, then 52,236, and settled 610 points more at 52,154 as a new closing high.
The top contributors to the gains of the day were banks and FIs. The newest record is Rs 205 lakh crore which is approximately $2.8 trillion, higher than the country’s GDP.
The Budget could be beneficial to growth related to investment whereas the proposal for an AMC for banks’ bad assets would extricate funds for lenders to focus on their main business, according to analysts. According to market players, a stable rupee with India’s forex reserve of around $600 billion will also give confidence to foreign funds to buy Indian stocks.
From February 1, investors have become richer by over Rs19 lakh crore due to the rally along with BSEs market capitalisation currently at Rs 205 lakh crore. It also helped in boosting India’s market cap above the country’s GDP.
Data from CDSL and BSE mentioned that domestic funds have net sold stocks worth about Rs 8,960 crore. The rally in the domestic market was also supported by an international rally but sidelined the issue of increasing rates of crude oil.
Global shares have boosted for the 11th day in a row and tensions in the Middle East rose oil to a 13-month high, according to Deepak Jasani, head of retail research (HDFC Securities).
The gains on Monday in the Dalal Street came mainly due to buying in financial and banking stocks with ICICI Bank, HDFC Bank and Axis Bank giving rise to over 80% of the Sensex’s gain.