High on Budget boost bull takes Sensex to 50K mark for 2nd time

New Delhi: Equity benchmark Sensex scaled the 50,000-mark for the second time in a week on Tuesday, riding high on Union Budget 2021-22 and going ahead, global trends and corporate earnings would guide its future course, analysts said.

Markets roared back to life on Budget day (February 1) after falling since January 21. Cheering the Budget proposals, the BSE benchmark Sensex zoomed 2,314.84 points or 5 per cent to close at 48,600.61 on Monday.

This was the best Budget-day gain for the markets since 1997.

Investor wealth zoomed over Rs 10.48 lakh crore in two days as Budget-driven market euphoria continued to charge bulls on Tuesday.

Continuing its winning ways on Tuesday, the benchmark jumped 1,197.11 points or 2.46 per cent to close at 49,797.72. During the day, it hit a high of 50,154.48, registering a gain of 1,553.87 points.

Likewise, the Nifty advanced 366.65 points or 2.57 per cent to end the session at 14,647.85.

"It has been a picture perfect rally in the last two sessions with the broader indices clocking record Budget Day gains in last over 20 years and extending them today as well. Although some profit-booking can be expected, but we expect stock-specific action to continue," said Rahul Sharma, Head - Technical & Derivatives Research, JM Financial Services.

Ajit Mishra, VP - Research, Religare Broking Ltd, said this Budget rally is expected to continue. However, participants should be selective in their approach now. Going ahead, global cues and corporate earnings would also be on the radar, he added.

Earlier on January 21, the benchmark had reached the momentous 50,000-mark. The 30-share BSE index had jumped to its all-time peak of 50,184.01 on that day.

"A growth and capex oriented Budget has provided ammunition to the bulls...," said S Ranganathan, Head of Research at LKP Securities.

Markets had witnessed profit-taking in the last part of January after recording massive gains earlier in the month.

In 2020, the 30-share BSE Sensex made monthly gains in seven, while closing with losses in five.

March 2020 proved to be dreadful for the domestic stock markets, with the benchmark Sensex plunging a massive 8,828.8 points or 23 per cent during the month as concerns related to the impact of the coronavirus pandemic on the economy jolted investor sentiments.

But stock indices soon returned to winning ways, helped by global and domestic liquidity support and growth optimism.

Driven by the improved investor sentiment, the market capitalisation of BSE-listed companies is also rising and is currently at over Rs 196.67 lakh crore. The BSE-listed companies' market cap had crossed the Rs 100 lakh crore milestone on November 28, 2014.

In 2020, investors grew richer by Rs 32.49 lakh crore, helped by massive returns in the equity market which had a roller-coaster ride during the year hit by the coronavirus pandemic.

The BSE benchmark Sensex, the country's first equity index, was launched in 1986. On July 25, 1990, it had closed above 1,000 points. The benchmark closed above the 10,000-mark on February 7, 2006.

In sync with the benchmark, BSE industrials, auto, capital goods, realty and banking indices rose as much as 4.23 per cent.

All 19 sectoral indices closed with gains.

Broader smallcap and midcap indices underperformed the benchmark, rising 1.59 per cent and 2.26 per cent, respectively.

On the other hand, the largecap gauge outperformed the Sensex, gaining 2.49 per cent.

On the forex market front, the rupee ended 6 paise higher at 72.96 against the US dollar.