Nifty up 57 points on budget day, bank stocks soar

Volatility ruled roost as the market swung between days highs and lows with investors digging into Finance Minister Arun Jaitley's much-anticipated Union-budget proposals as the benchmark nifty reclaimed the key 8,900-level and ending with gain of 57.25 points.
Earlier, the index soared nearly one per cent during finance minister commencing the budget speech by his optimistic view of economic outlook of 8-8.5 per cent growth next year and room for RBI rate cut amid endorsing a monetary policy frame work, so that retail inflation remain below 6 per cent.
But the index wavered and went into negative zone, when the FM announced need for space for regulating fiscal deficit to 3 per cent.

Later the market consolidated when Finance Ministers spelt-out goody-goodys for markets and investors confidence by reducing corporate tax to 25 per cent from 30 per cent, deferring GAAR implementation by 2 years, scrapping the distinction between direct and portfolio investors and simplification of financial markets by merging forward markets commission with SEBI, also a slew of low-cost pension and insurance schemes and considerable rise of disinvestment target figures.
Market sentiment got bolstered as FM stressed to revive infrastructure growth by introducing tax free bonds for roads, railways and irrigation projects and also Mega power project costing Rs one lakh crore and world class IT hub, along with boost in healthcare sector.

Buying was witnessed in key counters of Banking 3.23 per cent, Pharma 2.11 per cent, finance 1.95 per cent, auto 1.06 per cent.

However, FMCG dropped by 4.36 per cent.
The broader 50-share resumed with gap-opening of 8,913.05 and traded between a high of 8,941.11 and a low of 8,751.35 before ending at 8,901.85, showing a gain of 57.25 points, or 0.65 per cent, over its previous close.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 1,957.10 crore yesterday, as per provisional data released by the stock exchange.
Major gainers from the Nifty pack were Axis Bank rallied by 8.01 per cent, Indusindbank 6.02 per cent, Kotak Bank 4.43 per cent, SunPharma 3.65 per cent, ICICI bank 3.25 per cent, Tata Motors 3.16 per cent and Bank of Baroda 2.32 per cent.

However, key fmcg stock ITC plunges over 8.22 as govt increased excise duty on cigarettes, followed by BHEL 3.23 per cent, NMDC 2.73 per cent, NTPC 1.61 per cent and Hindalco 1.48 per cent.
Turnover in the cash segment slumped to Rs 21,350.22 crore as compared to Rs 25,713.94 crore yesterday. A total of 12,916.57 lakh shares changed hands in 75,12,365 trades. The market capitalisation at NSE stood at Rs 102,12,614 crore.