Sensex zooms 2,314.84 points & Nifty 50 crossed 14,000 mark after presentation of Union Budget

Domestic shares ended with robust gains on Monday, February 1, 2021, as investors cheered Union Budget proposals. The S&P BSE Sensex zoomed 2,314.84 points, or 5 per cent, to close at 48,600.61, after the presentation of the Union Budget. The Nifty 50 at the National Stock Exchange shot up 646.60 points, or 4.74 per cent, to 14,281.20. The Bank Nifty gained 2,523.55 points, or 8.26 per cent, to close at 33,089.05.

In the broader market, the BSE Mid-cap index jumped 3.03 per cent and the Small-cap index climbed 2.03 per cent, in intra-day trade.

Buyers outpaced sellers. On the BSE, 1942 shares rose and 991 shares fell. On the Nifty 50 index, 45 shares advanced and 5 shares declined. The top five gainers on Nifty 50 were IndusInd Bank (up 15.14 per cent), ICICI Bank (up 13.36 per cent), Bajaj Finserv (up 11.66 per cent), SBI (up 10.95 per cent) and Larsen & Turbo (up 9.29). The five losers were UPL (down 4.43 per cent), Dr Reddy's Laboratories (down 3.66 per cent), Cipla (down 2.42 per cent), Tech Mahindra (down 1.40 per cent) and Hindustan Unilever (down 0.39 per cent).

Union Budget 2021-22

Presenting the first-ever digital Union Budget, Union Minister of Finance and Corporate Affairs Nirmala Sitharaman stated that India's fight against Covid-19 continues into 2021. Provision has been made of Rs 35,000 crore for Covid-19 vaccine in Budget Estimate (BE) 2021-22. The government has committed nearly 1.97 lakh crore, over five years starting the financial year 2021-22. Capital expenditure has been steeply increased to provide 5.54 lakh crore, which is 34.5 per cent more than the budget estimate of 2020-21. Over and above this expenditure, more than 2 lakh crore is to be provided to states and autonomous bodies for their capital expenditure.

The fiscal deficit in Revised Estimate (RE) 2020-21 is pegged at 9.5 per cent of GDP. It has been funded through government borrowings, multilateral borrowings, small saving funds and short term borrowings. Another Rs 80,000 crore would be needed for which the government would be approaching the markets in these two months, FM added.

The fiscal deficit in BE 2021-2022 is estimated to be 6.8 per cent of GDP. The gross borrowing from the market for the next year would be around Rs 12 lakh crore.