Shillong, February 2: Following the presentation of the Interim Budget 2024-25, BSE Sensex witnessed a significant surge, surpassing the 72,000 mark on Friday. The Sensex stood at 72,422.09 points, marking a robust increase of 776.79 points or 1.08%.
As per IANS, Powergrid emerged as the top gainer with a growth of over 4%, while Infosys exhibited a rise of more than 2%. On the Nifty front, the leading gainers included BPCL and Adani Ports, both experiencing an increase of more than 4%.
Suzlon Energy Ltd also witnessed single day 4.98 percent hike making it a major player. The price of shares are expected to further go up.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, hailed the non-populist Budget’s focus on fiscal consolidation as a significant positive. He emphasized the advantageous impact of a substantial allocation for rural housing on construction-related sectors such as cement, steel, and paints. Additionally, he noted the favorable decline in bond yields, attributing it to the low net market borrowing of Rs 11.75 trillion, which proves beneficial for banks.
Vijayakumar highlighted improved global cues, with the US market showing appreciation for favorable trends in the economy following a brief period of concern with the cautious Fed message. He expressed confidence in the US heading for a soft landing and predicted upcoming rate cuts.
However, he cautioned about the near-term risk in the market due to high valuations, suggesting that corrections might be triggered by negative news. Anticipating increased volatility in the short term, he acknowledged the potential impact of the dollar index correction to 103 and the US 10-year falling to 3.88%, potentially restraining Foreign Institutional Investors (FIIs) from selling.”