The Indian stock market rose sharply as FM Nirmala Sitharaman tabled a favorable Union Budget 2023-24 in the parliament on Wednesday. The Sensex rallied more than 1000 points and Nifty added 250 points just after FM concluded the budget speech.
However, the market could not sustain sharp momentum for longer as indices pare gains after the brief rally. The BSE Sensex opened at 60,000 points, up 450 points, while Nifty opened above 17,800 points and Nifty Bank started trading above 41,000 points.
As of 2:10 PM, Sensex is trading up nearly 300 points or 0.5% to 59,841 points, while Nifty is trading at 17,701 points, up 40 points or 0.22% while Nifty Bank is trading up more than 500 points or 1.34% to 41,200 points.
Commenting on Union Budget, Suman Chowdhury, Executive Director & Chief Analytical Officer, Acuité Ratings & Research, said, "The market was expecting a further commitment to public capital expenditure from the Govt and it has not disappointed. The total CAPEX outlay in the Union Budget has been enhanced by 33% from 7.5 Lakh Cr to 10.0 Lakh Cr which takes it to an all-time high of 3% of GDP. This will not only give a boost to the infrastructure sector but also be positive for employment and growth."
Sector-specific movements were seen after budget announcements. IRCTC shares initially rose 1.80%, Rail Vikas Nigam gained 3.48%, and KEC International rose 1% as FM says PPP will boost the tourism sector. Despite a brief rally, shares of IRCTC and Rail Vikas Nigam fell.
Whereas ITC shares came under pressure and fell 6% after the center decided to increase NCCD (National Calamity Contingent Duty) on certain cigarettes by 16 percent. However, it rebounded sharply and rose 2%.