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Markets cheer as Sensex crosses 2,000 points, Nifty up by 500 points

Dubai - The benchmark S&P BSE Sensex touched 2,031.22 points or 4.39 per cent at 48,316.99 and NSE Nifty 50 index rose 4.14 per cent or 563.80 points to 14,198.40.

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The Indian stock markets cheered on Monday in the mid-trading session as stocks cross 2,000 points, the benchmark S&P BSE Sensex touched 2,031.22 points or 4.39 per cent at 48,316.99 and NSE Nifty 50 index rose 4.14 per cent or 563.80 points to 14,198.40.

Krishna Kumar Karwa, MD of Emkay, said: “Hats off to the FM for sticking to her promise of a budget that will be remembered for 100 years. A budget with no changes in direct taxes will certainly be remembered for years to come. Equity market will be enthused with no tinkering in capital gains taxes or STT or any form of Covid tax .The proposals to privatise two PSBs and one general insurance co is noteworthy as is increase in FDI limit in insurance to 74 per cent. The much awaited proposal to set up a DFI should boost capex in the coming years. To summarise the revival in the economy seen in the last 4-5 months will be further enhanced with the various budget proposals. Tax buoyancy, successful divestments and quick monetisation of operating infrastructure assets remain a key to achieving the fiscal deficit target of 6.8 per cent for fiscal year 20 21-2022.”

Similarly, Dhaval Jasani, founder and CEO at ZTI, said: “Right strategy to monetise assets, Indian Government balance sheet needs to be asset light. A huge amount of resources are under utilised /unutilised including land bank. It is time to monetise these assets and use funds for further development and growth.”

M.R. Raghu, managing director, Marmore Mena Intelligence, said: "Last year on the same day, Nifty tanked by 392 points or 3.26 per cent. Today Nifty is up 512 points or 3.16 per cent. A complete reversal in fortunes for investors."

India's fiscal deficit will now be 9.5 per cent against a target of 3.5 per cent for 2020-2021, and fiscal deficit for 2021-2022 is now targeted at 6.8 per cent. The finance minister is hoping for a fiscal consolidation only by fiscal year 2026.

"Of course the market is celebrating for a reason, and the huge capex push spurring infrastructure spending and healthcare push will trigger a wave of opportunities for many listed stocks. Recapitalising banks at this time when stress levels are extremely high is a good thing. Overall, a smart budget," said Raghu.

— sandhya@khaleejtimes.com

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