Investor wealth jumps Rs 3.57 lakh crore in two days of market rally

With the Budget overhang gone, investors are breathing a sigh of relief and are back to make fresh calls.

Investors' wealth increased Rs 3.57 lakh crore in two days of market rally where the Sensex zoomed 917 points on Tuesday in a broad-based recovery after the Budget-day fall.

The 30-share BSE Sensex settled 917.07 points, or 2.30 per cent, higher at 40,789.38 on Tuesday. It hit an intra-day high of 40,818.94.

On Monday, the index had gained 136.78 points.

Recovery in the market led to a rise in market capitalisation of the BSE-listed firms which climbed Rs 3,57,044.43 crore to Rs 1,56,61,769.40 crore since Saturday.

The 30-share BSE key index had ended 987.96 points, or 2.43 per cent, lower at 39,735.53 on the Budget day.

"Indian bourses tanked on Saturday after the Budget disappointed the Street's expectations.

“This was a knee-jerk reaction but as investors realised that the Budget will aid in the long-term growth of the economy, the market picked up.

“With the Budget overhang gone, investors are breathing a sigh of relief and are back to make fresh calls," Umesh Mehta, head of research, Samco Securities said.

Mehta also said January auto sales numbers were comparatively decent and with no other negative news, the Indian bourses saw a sudden rally on Tuesday.

Religare Broking vice-president (research) Ajit Mishra said, "Indian markets witnessed a sharp surge in today's session led by positive global cues and declining oil prices."

From the 30-share BSE Sensex pack, 28 companies closed with gains led by Titan Company, ITC, HDFC and Bajaj Finance.

On the BSE, 1,618 scrips advanced, while 885 declined and 181 remained unchanged.

In the broader market, the S&P BSE Midcap Index gained 1.37 per cent and small-cap rose 1.29 per cent.

Vikas Jain, senior research analyst, Reliance Securities, said: "Positive global market also led to the upward momentum."