MARKET CONTINUES RALLY

SENSEX UP ANOTHER 464 POINTS

The post-Budget euphoria for market continued for the second straight day as the benchmark Sensex jumped 464 points to nearly a one-month high, with banking stocks leading the pack after RBI relaxed capital regulations. To help shore up capital ratios, the Reserve Bank has allowed lenders to expand their base under the upcoming Basel III rules. Additionally, there were some reassuring words from Finance Minister Arun Jaitley himself, who pledged all possible support to keep banks in "good health". Asia ruled in the green after a raft of solid economic data in the US, which pushed up buying activity further. The 30-share Sensex closed the session higher by 463.63 points, or 1.95 per cent, at 24,242.98 -- its highest closing since February 8. The gauge had posted its biggest single-day gain of 777.35 points in almost 7 years in yesterday's trade.
It has gone up by over 1,240 points, posting its best two-day gains in almost seven years.
The NSE Nifty 50 index settled at 7,368.85, up 146.55 points, or 2.03 per cent.
The big positive was the government's commitment to its fiscal deficit target, raising expectations of a policy rate cut by RBI any time this month, traders said.
Finance Minister Arun Jaitley maintained the fiscal deficit target for 2016-17 at 3.5 per cent of GDP. The rupee was another sentiment booster as it gained 31 paise to end at a 7-week high of 67.54 per dollar. "The post-Budget rally extended for yet another day, with banks leading the pack after RBI eased capital regulations to meet Basel III norms. It also helped that FIIs were seen as buyers yesterday, putting a pause to their continuous sell off from Indian equities," said Anand James, Co-Head Technical Research Desk, Geojit BNP Paribas Financial Services.
Shares of state-owned banks such as SBI, PNB, Bank of Baroda were at the centre of buying activity. Among the 30 Sensex components, SBI was the star performer surging the most (up 11.50 per cent) to Rs 180.85, followed by ICICI Bank (7.36 per cent) to Rs 220.20. Gains in Adani Ports, Hero MotoCorp, BHEL, Tata Steel, Axis Bank, NTPC, HDFC and Maruti Suzuki drove the upside. As many 23 stocks gained while 7 lost. Among sectors, the BSE realty index jumped most by rising 5.05 per cent, followed by banking (4.92 per cent), infrastructure (2.84 per cent), PSU (2.57 per cent), IT (2.49 per cent) and power (2.13 per cent). The broader markets too continued to trend firm as retail investors boosted their bets, with the BSE small-cap index rising 2.21 per cent and mid-cap 1.88 per cent. Asian shares, including those of Hong Kong, Japan, Singapore and Shanghai, remained in the positive territory while Europe ruled high on speculation that the global economic recovery will gain traction.
Foreign portfolio investors (FPIs) net bought shares worth Rs 1,760.98 crore yesterday, provisional data from stock exchanges showed. 

Post-Budget rally adds over Rs 4 lakh cr to investor wealth

Investors in the domestic market are richer by over Rs 4 lakh crore because of the two-session post-Budget rally. The benchmark BSE Sensex today climbed by 463.63 points or 1.95 per cent to 24,242.98. In the previous session the index had gained 777 points -- its best single-day show in nearly seven years. With this, the index has gained 1,240.98 points in two trading sessions. Consequently, the market capitalisation (m-cap) of BSE-listed companies surged by Rs 4,13,838 crore to Rs 89,96,983 crore in two days. "The post budget rally extended for yet another day, with banks leading the pack after RBI eased capital regulations," said Anand James, Co Head Technical Research Desk, Geojit BNP Paribas. Reserve Bank yesterday announced amendments to recognise more balance sheet items as common equity tier-I capital which will help unlock up to Rs 35,000 crore for these lenders impacted by asset quality troubles. Meanwhile, among the 30-Sensex components, 23 ended with gains led by SBI, ICICI Bank, Adani Ports and Hero MotoCorp. Seven companies ended with losses where Mahindra & Mahindra took the biggest hit of 5.31 per cent. Among sectoral indices, the BSE realty index jumped most by rising 5.05 per cent, followed by banking (4.92 per cent), infrastructure (2.84 per cent), PSU (2.57 per cent), IT (2.49 per cent) and power (2.13 per cent). At the BSE, 1,964 stocks advanced and 712 declined while 118 stocks remained unchanged.