Sensex Surges 850pts, Nifty Above 17,550; Bank stocks gain

Major benchmarks dominate near the day’s high ahead of the 2022 Union budget presentation. The BSE Sensex rose 857 points to 58,872, while the NSE Nifty was at 17,582, 242 points higher .

Among Sensex-30 stocks, IndusInd Bank, ICICI Bank, HDFC twins, Infosys, Sun Pharma, Kotak Bank, Axis Bank, Bajaj Finserv, Ultratech Cement, L&T were the top gainers, up 1-2%. On the Nifty, Britannia was the additional winner, up 2%. On the other hand, Dr Reddy’s was the only loser on the Sensex, while BPCL, IOC, ONGC and Tata Motors were the Nifty losers, down 1-3%.

In the broader market, the BSE MidCap and SmallCap indices were also in the green, trading up to 0.8% higher. Sector-wise, all NSE banking indices led gains, up more than 2%. They were followed by the IT, pharmaceutical and real estate indexes. Meanwhile, the Nifty Auto index was muted and the Oil & Gas index was in the red, down 0.4%.

In the past 10 Budgets (excluding 2019, 2014 Interim Budgets), Nifty50 has fallen seven times on D-Day. In addition, recent years have seen extreme volatility on Budget days, as suggested by daily movements in the indices.

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Mohit Nigam, Head – PMS, Hem Securities, said, “The Union Budget 2022 will be announced today. Markets could face excessive volatility today. Intraday traders should be a bit cautious today as historically markets have been seen to show huge swing moves on budget day on either side. Good announcements are expected in rail infrastructure, domestic manufacturing incentives and renewable energy.”

“Technically, the key resistance levels for Nifty50 are 17,410 followed by 17,490 and on the downside, 17,270 followed by 17,190 may provide strong support. The main resistance and support levels for Bank Nifty are 38,250 and 37,700 respectively,” Nigam said.

Global indices

U.S. benchmarks posted gains on Monday for a second session to wrap up a tough January on the back of tech stock buying. The Dow Jones gained 1.2%, the S&P 500 jumped 1.89% and the Nasdaq index ended up 3.4%. In Asia, markets in mainland China, Hong Kong, South Korea and Singapore are closed for holidays. In Japan, the Nikkei 225 index was trading up 0.75%.

Oil prices also rose on Monday to end January on a higher note, amid a supply shortage and political tensions in Eastern Europe and the Middle East. Brent Crude finished up 1.3% at $91.21 a barrel.

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