Budget news is encouraging so is the sensex. The sensex took the cue from the budget and surged 777 points in a single day, the biggest one day gain. This is the second time that since Narendra Modi took charge Sensex has gone up in similar manner. Financial markets would cheer a Modi’s people budget. Modi is a game changer and the sensex rally over the fiscal measures offered RBI more elbowroom to cut rates and it is an encouraging news. Indian Economy will boom in the days to come. Further there are no visible near-term negatives. Investors are building portfolios after the Union Budget, which is a big boost. The BSE Sensex has got its bounce back, ironically after the budget analysis showed gains and the surge is the biggest single-day point gain in nearly seven years. This is the most visible positive reaction to the Union Finance Minister’s roadmap for fiscal prudence with enhanced outlays for the key sectors in 2016-17. This is the reason for the cheer and the surge will last longer due to the impact of budget and the hope of an out of turn reduction in repo rate. Post-budget boom in Sensex is a welcome sign and we salute the steps taken for such a rise in a single day.
(The views expressed by the author in the article are his/her own.)