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Home / Markets / Stock Markets /  Budget rally continues: Sensex surges nearly 4,000 points in 3 days

Indian stock markets surged to new high today, extending the post-budget rally. The NSE Nifty 50 index rose 1% to 14,789 while the benchmark S&P BSE Sensex ended at 50,255. This is the first first time Sensex has closed above the 50,000 mark. In three days, Sensex has surged about 4,000 points.

Drugmaker Dr. Reddy's Laboratories, which has a partnership to distribute Russia's Sputnik V coronavirus vaccine in India, ended the day 3.7% higher. The Lancet medical journal on Tuesday published results showing Sputnik V - named after the Soviet-era satellite - to be safe and 91.6 percent effective, allaying concerns over transparency.

The Nikkei/IHS Markit Services Purchasing Managers' Index rose to 52.8 in January from 52.3 in December, staying above the 50-level mark separating growth from contraction for the fourth straight month.

IndusInd Bank was the top gainer in the Sensex pack, zooming around 8%, followed by PowerGrid, Dr Reddy’s, Sun Pharma, NTPC and Axis Bank.

Gains in lenders HDFC Bank and Axis Bank of 0.9% and 2.7% helped the Nifty Bank index end the day 1.4% higher.

Here is what analysts said on today's market performance:

Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities

“Markets cheered the Union budget and scaled back to new highs. We believe structurally Nifty50 is poised for further up-move in the medium term while short term consolidation is expected. We see a base for the index at 13450 while on the higher side 16000 is achievable. In the short term volatility is expected to be high and any correction should be used as a buying opportunity. Metals look attractive at current levels while Banking is expected to witness some profit booking after the recent rally."

Deepak Jasani, Head of Retail Research, HDFC Securities

"Nifty managed to register a new all time high on Feb 03, though it retreated from the highs towards the end. This raises the possibility of a bullish technical count, especially if it does not correct sharply on the succeeding day. The band for Nifty in the near term is 14868 – 14653."

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

"We have been successful in getting past 14753.55 which was the previous high recorded by the Nifty. We should now target 15000-15100 and given the strong bullish tone, we could achieve this during the course of the February series. While we have good support at 14200-14300, a buy on dips strategy would be most appropriate."

Vinod Nair, Head of Research at Geojit Financial Services.

"The market has got a renewed focus on segments which are likely to be mostly benefited by a sustainable revamp in the domestic economy. The broader market is outrunning the benchmark with Pharma, Infra and PSU banks as the imminent leaders. Positive quarterly earnings is leading to a large upgrade in earnings forecast, which is also acting as a key tailwind in the rally." (With Agency Inputs)

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