Investors richer by over Rs 10 lakh crore post Budget rally

The total market capitalisation of all listed companies on BSE rose by Rs 11.24 lakh crore to Rs 97.07 lakh crore.

An over 2,500 points rally in Sensex during past one-and-half months, post Budget, has made investors richer by more than Rs 10 lakh crore.

The total investor wealth, measured in terms of cumulative market capitalisation (m-cap) of all listed companies rose by Rs 11.07 lakh crore to Rs 96.90 lakh crore on Wednesday. It was Rs 85.83 lakh crore on Budget day, February 29, 2016, the BSE data shows.

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The Bombay Stock Exchange (BSE) benchmark S&P BSE Sensex, which closed at 25,627, has gained 11.4% or 2,625 points from 23,002 on February 29.

Strong inflows from foreign investors, moderating inflation, better-than-expected index of industrial production (IIP) data and projection of a normal monsoon this year by Indian and foreign forecasters - Indian Metrological Department (IMD) and Skymet, have helped the market to rebound sharply.

Foreign investors have pumped in Rs 26,440 crore (nearly USD 4 billion) in the Indian equity market in post Budget, after pulling out massive funds in the preceding four months, the NSDL data shows.

An above-average rainfall, moderating inflation and drop in inflation expectations (in Mar’16 quarter) bode well for further monetary easing.

Religare Institutional Research believe there is room for a 25bps rate cut, the Reserve Bank of India (RBI) is likely to wait till August, until further clarity emerges on the progress of the monsoon, announcements on the implementation of the 7th Central Pay Commission (CPC) and evidence of monetary transmission.

More than half or 327 stocks from the BSE500 index have outperformed the market by gaining more than the benchmark index.

Delta Corp, Just Dial, Geometric and HeidelbergCement India have rallied more than 50% each, Bharat Heavy Electrical Limited (BHEL), Hindalco Industries, Reliance Infrastructure, Century Textiles & Industries, Force Motors and L&T Finance Holdings surged between 40%-50% on the BSE.

Tata Consultancy Services (TCS) have seen m-cap increased by Rs 70,000 crore to Rs 5 lakh crore during the period. Tata Motors and ICICI Bank m-cap rose by Rs 35,000 crore and Rs 30,000 crore respectively.

Reliance Industries, HDFC Bank, State Bank of India, ITC and Infosys has seen their m-cap gaining between Rs 20,000 crore – Rs 30,000 crore.