The BSE benchmark Sensex zoomed nearly 1,200 points while the NSE Nifty reclaimed the 14,600-level on Tuesday as the post-Budget rally continued for the second session.
The Sensex ended 1,197.11 points or 2.46 per cent higher at 49,797.72. The BSE gauge topped the 50,000-level briefly and swung 1,554 points during the day.
Likewise, the Nifty advanced 366.65 points or 2.57 per cent to end the session at 14,647.85.
Together with Budget day gains, the Sensex has amassed 3,511 points or 7.58 per cent in two sessions, and the Nifty has accumulated 1,007.25 points or 7.38 per cent.
Tuesday's top gainers included SBI, UltraTech Cement, HDFC Bank, L&T, Bharti Airtel, Maruti Suzuki and Kotak Bank.
Of the Sensex constituents, 27 shares closed in the green.
Most analysts are of the view that the equity markets reacted positively to the Budget primarily due to higher capital expenditure plans, status quo on direct taxes and no incremental taxes on capital gains.
On Monday, foreign institutional investors bought equities worth a net Rs 1,494.23 crore.
Economists and market analysts opined that this is a bold growth-oriented Budget and the absence of the much-feared 'COVID tax' and surcharges on income tax is a great relief.
Besides, privatisation of two nationalised banks and proposal of monetisation of assets like land are clear positives, according to them.
Market response to the Budget reflects growth optimism and the government has presented a pragmatic, bold and visionary Budget in these difficult times, they said.
Elsewhere in Asia, stock markets closed with gains on Tuesday amid signs of progress in US stimulus talks.
On the forex market front, the rupee ended 6 paise higher at 72.96 against the US dollar.