Budget Sparks Off A Market Rally
Strong foreign capital inflows, solid corporate earnings and positive global cues have been cheering domestic markets to touch record highs for multiple times now. In the last weeks, Sensex zoomed by 6.11 per cent while Nifty jumped by 6.06 per cent.
The Indian markets witnessed a strong rally post the Union Budget 2021 announcements. Markets cheered on the positive announcements and the absence of negatives. During the fortnight the global markets remained mixed with some gaining on improvement in economic data and on hopes of US’ stimulus. DJIA rose by 1.38 per cent. S & P 500 and NASDAQ gained by 1.56 per cent and 2.65 per cent, respectively. In the European markets, FTSE 100 declined by 1.74 per cent while DAX and CAC 40 surged by 3.05 per cent and 3.90 per cent respectively during the fortnight. Amongst Asian indices, Nikkei gained by 2.01 per cent whereas Hang Seng and Shanghai index fell by 2.41 per cent and 1.36 per cent, respectively.
Strong foreign capital inflows, solid corporate earnings and positive global cues have been cheering domestic markets to touch record highs for multiple times now. In the last weeks, Sensex zoomed by 6.11 per cent while Nifty jumped by 6.06 per cent. Bankex and Realty indices gained the most increasing by 14.96 per cent and 10.15 per cent respectively during the fortnight.
Auto stocks renewed attention from investors as the government announced the ‘voluntary vehicle scrappage’ policy during the Union Budget 2021 announcements.
The Auto index gained by 6.11 per cent during the recent fortnight. With some concessions being given for steel and other metal products as well the much needed boost for the power sector, metal and power stocks have attracted investors’ attention in the last few weeks. Metal index was up by 8.78 per cent and Power index rose by 8.55 per cent during the fortnight. FMCG index gained by 1.11 per cent while Healthcare index increased by 1.67 per cent. Amongst all the sectoral indices, IT index is the only index to end the fortnight in red down by 0.35 per cent. In broader markets, SmallCap index was up by 6.47 per cent and MidCap index surged by 6.42 per cent.
Trading data shows that FIIs were net buyers to the tune of Rs 9,380.62 crore while DIIs were net sellers to the tune of Rs 3,184.72 crore during the fortnight. As for oil prices, WTI Crude price gained by 9.85 per cent to USD 57.97 from USD 52.77 while Brent Crude price rose by 9.84 per cent to USD 61.13 from USD 55.68 in the last few weeks. Gold prices declined by 3.26 per cent to Rs 49,160 for 10 grams of 24 carat gold.
