Sensex soars over 347 points to regain 28,000-mark on Budget proposals

Sensex soars over 347 points to regain 28,000-mark on Budget proposals
Sensex soars over 347 points to regain 28,000-mark on Budget proposals

New Delhi: Buoyed by a positive budgetary announcements, coupled with a strong rupee the benchmark BSE Sensex soared 400 points in midsession to regain the crucial 28,000-mark on Wednesday with the Nifty gaining 92 points.

The market cheered the Budget proposals of infusing Rs 10,000 crore in public sector banks and keeping long-term capital gains tax unchanged for the capital markets.

Sentiments also got a boost after Finance Minister Arun Jaitley proposed to bring down the fiscal deficit to 3.2 percent of GDP from 3.5 percent.

The Sensex, which kept moving in a tight range after the Budget was presented in Parliament, made a strong rally by soaring 401.43 points, or 1.15 percent to 28,057.41, powered by budgetary proposals to infuse Rs 10,000 crore in public sector banks, no change for capital markets and allocating a record Rs 3.96 lakh crore to infrastructure sector as well as granting infra status to affordable housing.

Moreoever, proposal to further liberaise FDI policy too uplifted trading sentiments, brokers said.

The broad-based National Stock Exchange' Nifty also saw an upswing and shot up by 109.00 points, or 1.27 per cent to 8,670.30 following widespread gains in stock prices.

The rise in the market were helped mainly by shares of PSU banks that rose by as much as 4 percent as the government announced infusion of Rs 10,000 crore in public sector banks in the next fiscal.

Union Bank of India jumped 4.34 percent, Bank of Baroda rose 3.27 percent, SBI went up 3.13 percent and PNB gained 3.12 percent on BSE.

Among others, shares of Syndicate Bank gained 2.31 percent and Bank of India rose 2.25 percent.

The government will infuse Rs 10,000 crore in public sector banks in the next fiscal and more will be provided if required, Finance Minister Arun Jaitley said.

Infrastructure stocks also rose up to 5.4 percent today following allocation of a record Rs 3.96 lakh crore to the sector in Budget 2017-18.

 

With PTI Inputs

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