Indian equity benchmarks finished the Budget week more than two percent higher backed by broad-based gains, following two back-to-back weeks of cuts. Finance Minister Nirmala Sitharaman's Union Budget for FY23 was widely perceived as one aimed at promoting growth, at a time when the economy struggles against the coronavirus pandemic.

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NSE

For the week, which began with a rally on the eve of Budget amid optimism among investors, the Sensex gained 1,444.6 points or 2.5 percent. The Nifty50 benchmark added 414.4 points or 2.4 percent.

The heavyweight Nifty Bank pack -- financial services shares have a weightage of 36.7 percent in the Nifty50 -- climbed up 1,010 points or 2.9 percent, a second straight weekly gain.

Broader markets also cheered Budget announcements, with the Nifty Midcap 100 rising 2.1 percent. Its smallcap counterpart gained 1.9 percent.

Among sectors, the Nifty Metal, Health and Pharma indices were the biggest gainers, clocking weekly gains to the tune of 5-7 percent. The Nifty IT gained 3.6 percent.

As many as 38 stocks in the Nifty50 basket rose for the week.

In the BSE 500 universe -- the broadest index on the bourse -- around 360 scrips registered weekly gains.

In the midcap and smallcap segments, Elgi Equipments, IRB Infra, Deepak Fertilisers, Ambika Cotton and MAS Financial were the top gainers. On the other hand, UTI AMC, Welspun, MCX, Apar and Neuland were the top laggards.

The Budget effect

"The market welcomed the long-term growth-oriented Budget given there was no headroom for cautiousness and populist measures. However, it lacked supportive measures for rural, agriculture, low taxpayers and the pandemic-affected sectors," said Vinod Nair, Head of Research at Geojit Financial Services.

India's 10-year bond yield jumped by 22 basis points to its highest level recorded in two years, after the Finance Minister announced higher borrowings in the FY23 Budget.

Bears took charge on Dalal Street towards the end of the week taking weak global cues, as the Bank of England a secont straight rake hike and Facebook owner Meta's shares rattled the US markets.

IPO

AGS Transact Technologies shares made a sanguine market debut on January 31. At the current price of Rs 165.6 apiece on BSE, the stock is available at a discount of 5.4 percent to its issue price.

Vedant Fashions' IPO to raise up to Rs 3,149 crore hit the Street on February 4, securing an overall subscription of 14 percent on the first day of bidding.

The road ahead

In the coming week, all eyes will be on the outcome of the RBI's bi-monthly policy review, due on February 9.

Technical view

The Nifty50 appears to be facing resistance around its 20-day exponential moving average, though the Nifty Bank is exhibiting a bullish undertone thanks to the recent outperformance in PSU banking names, according to Yesha Shah, Head of Equity Research, Samco Securities.

"As long as the Nifty does not break below 16,850, the lower top formed on the daily chart is likely to be a minor decline. We suggest traders to maintain a neutral to a mildly bullish outlook for the coming week. Immediate resistance is placed at 17,800," she said.

Read more from CNBC-TV18's budget coverage here

First Published:Feb 4, 2022 6:25 PM IST