The Indian stock market continued its bull run with Sensex up 1,206.54 points or 2.48 percent at 49807.15, and the Nifty jumping 366.30 points or 2.56 percent at 14647.50.
The banking & financial along with the auto index gained the most. Bank Nifty along with Nifty Auto jumped over 3 percent each after the Finance Minister Nirmala Sitharaman said the government would infuse Rs 20,000 crore into public sector banks (PSBs) in 2021-22, to meet the regulatory norms.
The Finance Minister announced the setting up of an entity to address the stressed assets of banks. An organization will be set up through an Asset Reconstruction Company (ARC) model, she said in the 2021 Budget Speech. She also proposed to divest two PSU banks and one general insurance company in FY22.
Also, in her Budget speech the Finance Minister proposed voluntary scrappage policy to replace personal vehicles older than 20 years and commercial vehicles older than 15 years. The move is expected to be positive for the auto sector as it would support vehicle sales, especially commercial vehicles in the long-run.
The top gainers included names like Tata Motors which jumped 12 percent followed by State Bank of India which was up 8 percent. The other gainers included HDFC Bank and HDFC which were up 6-7 percent each.
Maruti Suzuki and Mahindra & Mahindra gained over 3 percent each while ICICI Bank, Kotak Mahindra Bank and Bajaj Finance added 2-3 percent each.
225 stocks hit new 52-week high on BSE including names like Tata Motors, Indian Bank, State Bank of India, TVS Motor Company, HDFC Bank, Ashok Leyland, Larsen & Toubro, Dilip Buildcon, Adani Gas, Bosch, ICICI Bank and ITC among others.
Gaurav Ratnaparkhi, Senior Technical Analyst, Sharekhan by BNP Paribas, pointed out that the Nifty went on to cross the junction of the 40-hour exponential moving average and the hourly upper Bollinger Band. This shows that the benchmark index has resumed its larger uptrend and is on the course to test its all-time high of 14,753.
“On the way up, 14,500 will be an intermediate hurdle to watch out for. On the flip side, 14,000-13,900 will now act as a crucial short term support zone,” Ratnaparkhi said.
“Nifty formed a strong bullish candle on a daily scale on February 1 and regained more than half of the losses made in the last six sessions,” said Chandan Taparia, Vice President and Derivatives and Technical analyst at Motilal Oswal Financial Services.
“Now, it has to continue to hold above 14,200 to witness a fresh move towards 14,500 then 14,750 zones, while on the downside, major support exists at 14,000 and 13,800 levels,” he said.
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