Record gains for markets on Budget day

The benchmark indices has reported their biggest gains on Budget day in last six budgets

The Sensex and Nifty rose more than 1% each today, reporting their highest gains on a Budget day during last six budgets.

Reduction in fiscal deficit, cut in surcharge, more increase in money for infrastructure development, increase in FY11 divestment target, recasting personal tax slab triggered the move up.

Going back in history, Sensex and Nifty had closed 2% higher on February 28 2005 after the Budget proposed a cut in corporate tax, custom duty and the rationalization in the personal tax structure.

However, in previous budget on July 6, 2009, the indices had reported a record fall of 6%, after budget disappointed the market with no major announcements on divestment, infrastructure, fuel policy and FDI was made by the then Finance Minister, Pranab Mukherjee.

Among sectoral indices, BSE Auto, Metal, Banking and Healthcare indices were the major gainers today that moved up more than 2 per cent each.