Sensex surged over 900 points today
Sensex surged over 900 points today

Sensex surges over 900 points to erase Budget day's loss; HDFC, RIL lead gains

  • Nifty today regained 11,950
  • Global markets were mostly higher today

Indian markets jumped sharply today, tracking global gains and the recent slide in global crude prices. The Sensex surged 917 points to 40,789 to register its biggest one-day gain in three months. The broader Nifty50 index rose 2.3% to end at 11,979 as markets rebounded from a big fall registered in Saturday's special Budget session. On Saturday, the Sensex had plunged 987 points while on Monday both the indices had ended moderately higher.

Among the Sensex stocks, Titan surged over 7% to emerge the biggest gainer after the jewellery maker reported 13% growth in net profit in Q3.

Among other gainer, ITC, Bajaj Finance, HDFC, Hero MotoCorp, Tata Steel, HDFC Bank and RIL surged between 3% and 4%.

With Budget behind us now, all eyes are now again on the global markets movement and the upcoming RBI monetary policy due on Thursday, say analysts.

The broader markets were also strong today with BSE midcap and smallcap indices rising about 1.4% and 1.3% respectively.

"Markets got extremely oversold after the Budget. Also oil at $55 a barrel means government is in a sweet spot to do more reforms as deficit will be in control," says Sanjiv Bhasin, director of IIFL Securities.

He expects midcaps to outperform this year.

Finance minister Nirmala Sitharaman in the Budget took several measures to woo foreign portfolio investors (FPIs). This is a big incentive for long-term sovereign wealth funds to invest in India, Mr Bhasin added.

Data released on Monday showed India's manufacturing activity expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, according to a private survey showed on Monday, suggesting the economy may be getting back on firmer footing.

"The slide in oil prices is big positive for the Indian economy. Our forex reserves could soon breach half a trillion dollar. Moderate inflation could leave more resources in the hands of consumers and improve margins of some corporates. The coronavirus outbreak in China could throw opportunities for India," said Chokkalingam G, founder and CIO of Equinomics Research & Advisory.

Global markets were mostly higher today, with China's stocks also eking out gains, as bargain-buyers stepped in after the previous day's rout but trading floors remained anxious as China's deadly virus claimed more lives.

(With Agency Inputs)

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