Sensex shakes off Budget blues, jumps 777 points to close at 23,779
Brokers said the central government's commitment to keep the fiscal deficit at 3.5% of GDP in 2016-17 lifted the mood.
The stock market on Tuesday posted its biggest single-day gain in nearly two years on Tuesday. The benchmark Bombay Stock Exchange Sensex climbed as many as 777.35 points to end the day at 23,779.35, following Monday's slump on Budget day. The National Stock Exchange Nifty also went up by 235.25 pts to close at 7,222.30.
The rise in the markets was attributed to all-round buying following the Centre's commitment to keep the deficit at 3.5% and growth-oriented budgetary proposals, reported PTI. The rupee also strengthened by 47 paise to 67.95 against the United States dollar during the intraday trade at the forex market.
Growth-oriented budgetary proposals like higher spending in infrastructure, allocation of nearly Rs 36,000 crore for the farm sector and a higher credit target aimed at doubling farmers' income in five years buoyed sentiment, brokers said. The government's commitment to keep the deficit at 3.5% of GDP in 2016-17 also lifted the mood, they added. The Sensex had dropped 152.30 points on Monday as Finance Minister Arun Jaitley presented his second budget.