The post-fiscal recovery continued in equity markets on Wednesday, with key indices gaining 1. 18%, as positive global indices combined with budget strength boosted confidence. After gaining 814 issues on Tuesday, the benchmark Sensex index rose 696 issues to 59,558. 33 and the NSE Nifty index jumped 203 numbers to 17,780. 00.
With this gain, the Sensex rose 1,544 points, or 2. 66%, in the last two sessions after Finance Minister Nirmala Sitharaman announced the Union’s budget. Banking and currency stocks that gained 2% led the rally on Wednesday, backed by stocks in IT, real estate, customer durable goods and healthcare gained as much as 1. 50%.
The rupee pared its initial gains to 74. 83 against the U. S. currency on Wednesday due to demand from foreign banks.
Bond yields also continued to rise with the benchmark 10% government bond yield emerging some other 3 core issues to 6. 88% as the market was concerned about emerging government lending. For inventory markets, the budget was broadly balanced with no nasty surprises, adding to the uptrend. Although there were some disappointments over the lack of measures to improve consumption, the economic recovery in fiscal year 23, along with advances in immunization, would continue to drive the recovery in demand, officials said. analysts Given continued policy guidance and pronouncements, markets will most likely stick to budget and focus on the emerging global interest rate regime and hence bond yields emerging markets and corporate earnings expansion that have remained resilient so far in the third quarter of fiscal 22. earnings season, analyst says. Going forward, markets will most likely focus on RBI policy on Feb 9th. However, markets are likely to be cautious over the coming weeks given a series of global central bank tightening and rate action amid liquidity squeeze pressures.