Share markets in India have extended early gains and are presently trading on a strong note.
Benchmark indices gave a thumbs up to Union Budget 2021, with BSE Sensex rising over 2,200 points and the NSE Nifty breaching 14,000 levels.
The market rally was driven by gains in banking stocks, finance stocks and auto stocks.
Investors cheered the Budget proposal to raise in foreign direct investment (FDI) limit in insurance from 49% to 74%, scrappage policy for vehicles, as well as privatisation of two nationalised banks and proposal of monetisation of assets.
Absence of the much-feared COVID-19 cess and the surcharges on Income Tax also boosted market sentiment.
Finance Minister Nirmala Sitharaman also said that Life Insurance Corporation of India (LIC) will go for an initial public offering in 2021-22. The much-awaited LIC IPO is likely to be the largest share sale.
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Shares of IndusInd Bank, ICICI Bank and Bajaj Finserv soared over 10% while SBI, HDFC and L&T gained in the range of 7-9%.
Shares of India's largest cigarette manufacturer, ITC, and other cigarette manufacturers soared after the Union Budget for 2021-22 skipped any taxation changes on tobacco products in a major relief for the sector.
More details to follow in the upcoming commentary.
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