-
ALSO READ
Bank stocks in focus; Nifty Bank up 2%; Axis Bank, HDFC Bank rally up to 4%
Bank stks in focus; Nifty Bank adds over 2.5%; IDFC First gains 7%, SBI 2%
Budget-related stocks to watch: PSUs, infra, financials, healthcare
BofA, CLSA think Axis, IndusInd Bank are ripe for re-rating; here's why
Stocks to watch: RIL, YES Bank, Vedanta, HDFC Bank, SBI Card, Biocon
-
Shares of State Bank of Bank (SBI), ITC, Larsen & Toubro (L&T), UltraTech Cement, HDFC Bank, ICICI Bank, Bajaj Auto, and Bajaj Finserv were among the eight stocks from the 30-share S&P BSE Sensex hitting their respective 52-week highs on Tuesday, as the Indian markets extended their historic Budget-day rally and surged as much as 3 per cent in intra-day deals.
The benchmark index hit an intra-day high of 50,154.48 today, just 30 points shy from its all-time high level of 50,184.01, touched on January 21, 2021.
SBI, the top gainer among the Sensex stocks, was up 8 per cent to Rs 337 at 02:25 pm, as compared to 2.6 per cent gain in the benchmark index. The stock of the state-owned lender surpassed its previous high of Rs 332 touched on February 2, 2020. Meanwhile, ICICI Bank and HDFC Bank have hit their respective record highs in intra-day trade today.
Financial sector stocks, especially banks, have been in limelight since Finance Minister Nirmala Sitharaman proposed to divest stake in two public sector banks (PSBs) while unveiling Budget 2021 proposals. That apart, the FM set aside Rs 20,000 crore for recapitalisation of PSBs.
The government will introduce legislative amendments to privatise these banks in the current Budget session. Of the Rs 1.75 trillion divestment target set for the next fiscal, the government expects Rs 1 trillion to come from divestment of its stake in PSBs and financial institutions. CLICK HERE FOR FULL REPORT
ITC hit a 52-week high of Rs 223, up 3 per cent in intra-day trade today. However, there was no material announcement in the Budget that would significantly impact any of the consumer stocks. Given the encouraging pace of recovery in the economy, the outlook for the Consumer sector is immensely optimistic. The lack of additional GST or cess on cigarettes is seen as minor positives for ITC.
UltraTech Cement and L&T were rallied for the second straight day as the Union Budget focussed on growth with a sharp increase in capital expenditure (capex) allocation. The huge thrust on infrastructure spending by the government in the Budget 2021–22 bodes well for construction materials such as cement and steel. A higher allocation towards capital expenditure with a focus on roads, infra and railways can give a significant growth impetus to the economy, according to analysts.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU