Market posted strong gains, most of Adani Group stocks recover
At close, the Sensex was up 1,961.32 points or 2.54% at 79,117.11, and the Nifty was up 557.35 points or 2.39% at 23,907.25.
Domestic markets were trading flat during the intra-day session on Monday with gains in the FMCG and banks. Markets have been volatile this morning as investor sentiment took a beating after the Union Budget failed to meet expectations.
At 12.41 pm, the Sensex was up 53.23 points at 39,788.76 and Nifty gained 25.30 points to achieve 11,687.15.
In the previous session, Sensex logged its biggest single-day plunge in more than a decade on Saturday after the Union Budget failed to live up to market expectations of growth-boosting measures and fiscal discipline.
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Sensex settled 987.96 points or 2.43 per cent lower at 39,735.53, and Nifty plunged 300.25 points or 2.51 per cent to close at 11,661.85.
Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 1,199.53 crore, while domestic institutional investors purchased shares worth Rs 36.64 crore on Saturday, data available with stock exchanges showed.
On Monday, ITC, Tata Motors, TCS, Hero Motorcorp and Infosys were among the top laggards, while Nestle, HUL, Asian Paints, Bajaj Auto and IndusInd Bank were trading with gains.
According to analysts, the market is disappointed as the budget lacked any significant measure to stimulate demand and did not provide any relief on capital gains tax as expected from budget.
Presenting the Union Budget for 2020-21 in Parliament, Finance Minister Nirmala Sitharaman pegged the fiscal deficit at 3.8 per cent for the current fiscal, compared to the earlier target of 3.3 per cent of GDP.
She also proposed lower income tax slabs for those foregoing various exemptions, and removed dividend distribution tax (DDT) on companies, effectively shifting the tax burden to the recipients.
(With input from agencies)
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