Market enthusiasm fades after a brief post-budget rally; Sensex trades below 59,900, Nifty hovers around 17,700

The Indian inventory market rose sharply as FM Nirmala Sitharaman tabled a favorable Union Budget 2023-24 within the parliament on Wednesday. The Sensex rallied greater than 1000 factors and Nifty added 250 factors simply after FM concluded the funds speech.

However, the market couldn’t maintain sharp momentum for longer as indices pare positive factors after the brief rally. The BSE Sensex opened at 60,000 factors, up 450 factors, whereas Nifty opened above 17,800 factors and Nifty Bank began buying and selling above 41,000 factors.

As of two:10 PM, Sensex is buying and selling up practically 300 factors or 0.5% to 59,841 factors, whereas Nifty is buying and selling at 17,701 factors, up 40 factors or 0.22% whereas Nifty Bank is buying and selling up greater than 500 factors or 1.34% to 41,200 factors.

Budget 2023-24IANS

Commenting on Union Budget, Suman Chowdhury, Executive Director & Chief Analytical Officer, Acuité Ratings & Research, mentioned, “The market was anticipating a additional dedication to public capital expenditure from the Govt and it has not disillusioned. The whole CAPEX outlay within the Union Budget has been enhanced by 33% from 7.5 Lakh Cr to 10.0 Lakh Cr which takes it to an all-time excessive of three% of GDP. This is not going to solely give a increase to the infrastructure sector but in addition be constructive for employment and development.”

Sector-specific actions had been seen after funds bulletins. IRCTC shares initially rose 1.80%, Rail Vikas Nigam gained 3.48%, and KEC International rose 1% as FM says PPP will increase the tourism sector. Despite a brief rally, shares of IRCTC and Rail Vikas Nigam fell.

Whereas ITC shares got here below strain and fell 6% after the middle determined to extend NCCD (National Calamity Contingent Duty) on sure cigarettes by 16 p.c. However, it rebounded sharply and rose 2%.