The stock markets recorded their sharpest-ever Budget day rally on Monday, ending the session 5 per cent up, as investors gave an overwhelmingly positive response to the Budget presented by Finance Minister Nirmala Sitharaman. The gains in domestic indices were mainly led by banking, financial, and auto stocks. Sensex ended 2314.94 points higher at 48,600.61, while the Nifty gained 646.60 points or 4.74 per cent to settle at 14,281.20.
Here are the key stocks that moved today:
Titan: Shares of jewellery and watchmaker Titan Company rallied nearly 6 percent reacting to the Budget 2021-2022 proposal to cut import duty on import of gold and silver from 12.5 per cent currently to 7.5 per cent. Finance Minister Nirmala Sitharaman noted that since the duty on gold and silver was raised from 10 per cent in July 2019, prices of precious metals have risen sharply. While the cut on duties is at 7.5 percent for gold and silver from earlier 12.5 percent, there is additional Agriculture Infrastructure and Development cess at the rate of 2.5 percent added to this.
ITC: Shares of India’s largest cigarette manufacturer ITC soared over 6 percent after the Union Budget for 2021-22 skipped any taxation changes on tobacco products in a major relief for the sector. There was wide speculation that there could be higher taxation to help the government bridge the revenue gap.
Banks stocks: Banking stocks led the market rally on Monday with the Nifty Bank index hitting its all-time high after Finance Minister Nirmala Sitharaman announced privatisation of two public sector banks and measures to clean up the NPAs in the banking sector. The Nifty Bank index surged over 9 percent in intraday deals to hits its all-time high of 33,305 post the announcement with all constituents, except IDFC First Bank, in the green. The index ended 8 percent higher for the day.
IndusInd Bank and ICICI Bank jumped the most, up 15 percent and 13 percent, respectively. These lenders were also lifted on the back of positive sentiment post their better than expected December quarter results. Meanwhile, RBL Bank, SBI, Bank of Baroda, Axis Bank, PNB, Federal Bank and HDFC Bank were also up between 6 percent and 11.5 percent each.
Realty stocks: Shares of Real Estate companies rallied as affordable housing tax sops, infra allocation announced in the Budget 2021 brought cheer to the developers. Finance Minister Nirmala Sitharaman reiterated the government’s commitment to housing for all by extending tax exemptions on interest paid towards affordable housing loans by another year. After the announcements, the Nifty Realty index surged over 6 percent with all constituents in the green. DLF rallied 10 percent, Indiabulls Real Estate was up 8.8 percent, and Sunteck Realty advanced 7.6 percent during the day. Phoenix, Godrej Properties, Prestige Estate, and Oberoi Realty added between 2-6.5 percent.
Auto stocks: Shares of auto companies rallied on Monday after Finance Minister Nirmala Sitharaman announced a voluntary vehicle scrapping policy to phase out old vehicles. The Nifty Auto index surged over 4 percent post the announcement with all index constituents in the green. Ashok Leyland jumped the most, up over 10 percent while Tata Motors, M&M, Bosch, Bharat Forge, Motherson Sumi, MRF and Eicher Motors added between 4 percent and 7 percent.