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Investors richer by over Rs 2.3 lakh cr post-Budget

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 8:04 PM IST

Stock market today cheered the Union Budget for the second consecutive day with a record- breaking rally, taking the total addition to investors' wealth to over Rs 2,33,500 crore in just two trading sessions.

The benchmark Sensex today soared higher by 623.10 points -- the biggest one-day gain since May 18, 2009 when the index had rose by nearly 2,111 points to cheer the people's majority verdict in favour of the incumbent UPA government.

In the process, the total investors' wealth, measured in terms of cumulative market value of all listed stocks, rose by Rs 1,85,549 crore at the end of today's trading.

Prior to this, the investors' wealth had risen by nearly Rs 50,000 crore yesterday, when the Sensex rose by over 122 points despite paring most of the nearly 600-point gains on the back of Union Budget announcements.

At the end of today's trade, the investors' wealth stood at Rs 65,28,620.46 crore, up from Rs 63,43,071.92 crore yesterday.

Besides, today's gain of 3.5%, it is also the highest ever one-day rise for the Sensex for a day after the Union Budget announcement.

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So far, the gain of 3.27% registered on the day after the Budget announcement of February 28, 2002 was the biggest ever, which has now been relegated to the second position.

However, the market had fallen sharply, with a 3.87% plunge in the Sensex, on the Budget day itself in 2002.

Over the past 10 years, the markets have registered mostly negative returns in the one-month period post-Budget.

The average return for this period has been negative 1.2%, with the best and worst movements being a gain of 9% and a loss of 11%, respectively in one-month period after the Budget announcement.

Marketmen said that the market has mostly responded to the pro-reforms announcements made in this year's Budget.

Besides, a sharp sell-off in the run-up to the Budget as the Sensex has fallen by about 15% over past two months and absence of any major expectations, have also helped the markets register smart gains today and on the Budget day.

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First Published: Mar 01 2011 | 5:33 PM IST

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