Benchmark index rose 1.76%, compared with the 2.19% increase on Budget day 12 years ago

If the performance of the benchmark Sensex is a barometer to evaluate the reaction to the Union Budget, then the one presented on Wednesday has to be the best since 2005.

On Wednesday, the Sensex gained 1.76% or 485.68 points to close at 28,141.64. This is the best gain for the Sensex on a budget day since February 28, 2005 when the benchmark index had gained 2.19%. There was an overall positive sentiment with 1,913 stocks gaining ground on BSE, as against only 915 declines.

The broader Nifty gained 155.10 points or 1.81% to close above the psychological 8,700-mark at 8,716.40. The India VIX index – a barometer for near-term volatility – fell 16.97% from 16.83 to 13.97.

Interestingly, market participants say that there was no negative announcement related to capital markets, which led to the rally in the benchmark indices that traded mostly flat while the budget speech was on.

Source: thehindu.com