2. Sensex closed above 50,000 points for the First Time as
it gained over 8% in just three days post budget.
3. • On 1st February 2021, Bombay Stock Exchange gained
5% to close at 48,601 and National Stock Exchange rose by
4.7% to close at 14,281.
• IndusInd bank, ICICI bank, Bajaj finsev, SBI, L&T and
HDFC were some of the top gainers, rising as much as
15.16 percent.
• While Dr Reddy, HUL and Tech mahindra were only
losers falling upto 3.62 percent.
• This was the fourth time since 2011 that the market have
closed in positive territory post budget session.
4.
5. As Finance Minister Nirmala Sitharaman announced
Union Budget 21-22 that was seen as growth oriented and
balanced, Indian market rose high on 1st February.
This was considered as the best performance by the stock
market on a budget day since the year 1999.
6. • Along with Indian market, the global markets have also
reacted to the budget session.
• China, Japan, Hong Kong and South Korean markets
rose around 1%.
• Corona vaccine also contributed to the rise of the
markets globally.
• Since November 2020, the global markets have shown
upward movement after economic slowdown caused by
the pandemic.
8. • The BSE sensex started with 124.15 points on 3rd
April, 1979.
• In this decade, there was not much fluctuation in the
market.
• In the decade of 1990s, Liberal budget and Harshad
Mehta scam caused rapid changes in the market.
• On 7th February, 2007, the sensex crossed 10,000
points after the boom in technology sector.
9. • On 11th December, 2007, the sensex crossed 20,000
points; after which there was Global Financial Crisis in
the year 2008-09.
• The markets crashed by over 50%, which was seen as
biggest fall since the year 1992.
• The Lok Sabha elections in 2009 and 2014 gave
upward movement to the market.
• On 26th April, 2017, the Dalal Street crossed 30,000
points.
10. • Thereon, Implemention of GST in 2017 and Lok
Sabha elections in 2019 gave rise to the market.
• The market crashed in March 2020 as National
lockdown was announced due to pandemic.
• On 8th October, 2020, the Dalal Street crossed
40,000 points in hope of corona vaccine.
• On 3rd February, 2021, the market crossed 50,000
post budget session.
11. What's Next
• The significance of the Sensex breaching 50K
• Does this mean the market will continue to rise?
• For the next six months
12. What impacted Sensex to reach 50,000
• Strong domestic rally
• Positive corporate earnings
• FII flows
• Global equities at record high
• Reliance-Future deal approval
13. How the budget affects the stock market?
• Increase in exemption limit for taxpayers and its impact
• Change in corporate tax and its impact
• Stance on LTCG and its effect in the stock market
• Taxation on Buyback of Shares
• Sector-wise hit and their impact on the stock market
Budget 2021
• privatization of two nationalized banks
• increasing its spending on Infrastructure
• boost the construction sector
14. How Budget altered these horizon
• ITC
• INFOSYS
• NESTLE INDIA
• ONGC
• ASIAN PAINTS
• AXIS BANK
15. Health Care sector
• Pradhan Mantri Atma Nirbhar Swasthya Bharat Yojana
• FY22 outlay (budget estimate) for health
• Aatmanirbhar Swastha Bharat
• Mission Poshan 2.0
17. COVID IMPACT ON DIFFERENT
SECTORS
• Aviation and Tourism
• Restaurant services
• Raw materials and Electronic parts
• Pharmaceutical Industry
• Auto Sector
• Textiles Industry
18. Economic effects of the stock market
• Wealth effect
• Effect on pensions
• Consumer Confidence
• Investment
• Bond market
