Indian equity market cheered Union Budget 2021-22 as the benchmark indices Sensex rallied over 2,300 points, while Nifty gained more than 640 points, posting its best Budget Day performance on February 1, since 1997.

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Finance Minister Nirmala Sitharaman presented a budget that experts termed as growth-oriented and packed with enough ammunition to boost the fledgeling economy, which is still reverberating the COVID-19 pandemic induced impact.

In 1997, both indices gained over 6 percent each.

This year, The market rally was largely led by the banking stocks with the Nifty Bank index surging over 8 percent followed by auto, financial services and metal indices, as the FM announced a slew of measures to pump-prime up the economy.

The Nifty Bank hit its all-time high, up 9 percent after the FM announced measures to clean up NPAs in the sector. On the Nifty50 index, IndusInd Bank, ICICI Bank, Bajaj Finserv, SBI and L&T were the top gainers while UPL, Dr Reddy's, Cipla, Tech Mahindra and HUL led the losses.

Read here:

Budget 2021: Six reasons why the Sensex vaulted 2,300 points today

"The FM has delivered a unique Budget, wherein all the right measures have been proposed to speed up growth. The move of rationalisation of spends, minimal changes to the direct and indirect taxes and no additional taxes will be well received. Higher spending will kickstart a virtuous cycle of growth," said Dhiraj Relli, MD & CEO, HDFC Securities.

Data reveals that in the last 10 years, the Indian equity markets' response remained mixed. The observations very much reflected in the benchmark indices’ performance.

The BSE Sensex has fallen by 0.16 to 2.43 percent six times and has risen by 0.48 to 1.76 percent on the remaining four occasions when the Union Budget was presented in the last 10 years.

Read here: Here is how Sensex performed on Budget Day in the past 10 years

In the previous Budget of calendar year 2020, the Sensex had ended with a massive loss of 987.96 points, or 2.43 percent.

Digging down data, the Indian stock market reacted positively to the Union Budgets of the calendar years of 2011, 2015, 2017 and 2019.

For full coverage on Union Budget 2021, click here

First Published:Feb 1, 2021 5:13 PM IST