ITC, HDFC Bank and six other Sensex stocks scale fresh 52-week highs

SBI, the top gainer among the Sensex stocks, was up 8 per cent to Rs 337 at 02:25 pm, surpassing its previous high of Rs 332 touched on February 2, 2020

Shares of State Bank of Bank (SBI), ITC, Larsen & Toubro (L&T), UltraTech Cement, HDFC Bank, ICICI Bank, Bajaj Auto, and Bajaj Finserv were among the eight stocks from the 30-share S&P BSE Sensex hitting their respective 52-week highs on Tuesday, as the Indian markets extended their historic Budget-day rally and surged as much as 3 per cent in intra-day deals.

The benchmark index hit an intra-day high of 50,154.48 today, just 30 points shy from its all-time high level of 50,184.01, touched on January 21, 2021.

SBI, the top gainer among the Sensex stocks, was up 8 per cent to Rs 337 at 02:25 pm, as compared to 2.6 per cent gain in the benchmark index. The stock of the state-owned lender surpassed its previous high of Rs 332 touched on February 2, 2020. Meanwhile, ICICI Bank and HDFC Bank have hit their respective record highs in intra-day trade today.

Financial sector stocks, especially banks, have been in limelight since Finance Minister Nirmala Sitharaman proposed to divest stake in two public sector banks (PSBs) while unveiling Budget 2021 proposals. That apart, the FM set aside Rs 20,000 crore for recapitalisation of PSBs.

The government will introduce legislative amendments to privatise these banks in the current Budget session. Of the Rs 1.75 trillion divestment target set for the next fiscal, the government expects Rs 1 trillion to come from divestment of its stake in PSBs and financial institutions. CLICK HERE FOR FULL REPORT

ITC hit a 52-week high of Rs 223, up 3 per cent in intra-day trade today. However, there was no material announcement in the Budget that would significantly impact any of the consumer stocks. Given the encouraging pace of recovery in the economy, the outlook for the Consumer sector is immensely optimistic. The lack of additional GST or cess on cigarettes is seen as minor positives for ITC.

UltraTech Cement and L&T were rallied for the second straight day as the Union Budget focussed on growth with a sharp increase in capital expenditure (capex) allocation. The huge thrust on infrastructure spending by the government in the Budget 2021–22 bodes well for construction materials such as cement and steel. A higher allocation towards capital expenditure with a focus on roads, infra and railways can give a significant growth impetus to the economy, according to analysts.