Mumbai : The post-Budget euphoria for market continued for the second straight day as the benchmark Sensex jumped 464 points to nearly a one-month high, with banking stocks leading the pack after RBI relaxed capital regulations.
To help shore up capital ratios, the Reserve Bank has allowed lenders to expand their base under the upcoming Basel III rules.
Additionally, there were some reassuring words from Finance Minister Arun Jaitley himself, who pledged all possible support to keep banks in “good health”. Asia ruled in the green after a raft of solid economic data in the US, which pushed up buying activity further.
The 30-share Sensex closed the session higher by 463.63 points, or 1.95 per cent, at 24,242.98 — its highest closing since February 8.
The gauge had posted its biggest single-day gain of 777.35 points in almost 7 years in yesterday’s trade.
It has gone up by over 1,240 points, posting its best two-day gains in almost seven years.
The NSE Nifty 50 index settled at 7,368.85, up 146.55 points, or 2.03 per cent. The big positive was the government’s commitment to its fiscal deficit target, raising expectations of a policy rate cut by RBI any time this month, traders said.
Finance Minister Arun Jaitley maintained the fiscal deficit target for 2016-17 at 3.5 per cent of GDP.
The rupee was another sentiment booster as it gained 31 paise to end at a 7-week high of 67.54 per dollar.