Markets Cheer Budget 2021; Investors Get Richer By Rs 5.25 Lakh Crores

Indian markets cheered the Budget 2021 with investor wealth jumping by Rs 5.25 lakh crores. In her Budget 2021 speech, Finance Minister Nirmala Sitharaman pegged fiscal deficit at 9.5% of GDP. She also laid out capex plan of Rs. 5.54 trillion for FY 21-22 in comparison to the last year's outlay of Rs. 4.39 trillion.

Nifty in the run-up reclaimed the psychological mark of 14000 and at around 1:40 pm traded at 14170, up 3.93% or 535 points. Sensex also made whopping gains of close to 2000 points and traded at 48224 points. Nifty Bank was the outlier in trade with gains of over 7% led by gains in ICICI Bank, HDFC Bank, SBI, Axis Bank, Kotak Mahindra Bank.

All of the Nifty sectoral indices barring Nifty Pharma gained in trade today. Broader markets meanwhile underperformed headline indices with gain of 2.71% on the Nifty Midcap 100.

In its Budget 2021 proposals, FM announced voluntary vehicle scrapping policy, the move lifted the sentiment of auto sector and there were gains on the Nifty Auto index of over 4%, led by surge in stock price of Maruti, Tata Motors, Eicher Motors, Bajaj Auto and M&M among others.

Realty sector also gave thumbs up to the FM's move of extending the timeline for claiming deduction in respect of payment of interest on affordable housing by 1 year. Nifty Realty gained up to 4%, with major gainers being DLF, Phoenix Mills, Indiabulls Real Estate.

The Finance Minister allocated Rs 1.18 trillion for the Ministry of Road Transport and Highways, the move fuelled gains in infrastructure firms engaged in roads and highways construction such as NCC, Ashok Buildcon, KNR Constructions among others.

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