The 50-share pack surged 429 points to trade at 22,126.80 and the BSE Sensex soared 1,444 points to hit a day high of 73,089.40.
NSE Nifty rose sharply to scale its record high level in Friday's late morning deals. The 50-share pack surged 429 points to trade at 22,126.80 and the BSE Sensex soared 1,444 points to hit a day high of 73,089.40. Both the indexes rose sharply amid strong global cues and budgetary announcements.
Such was the rise in the domestic bourses that around Rs 5.9 lakh crore of BSE market capitalisation (m-cap) was generated. Investor wealth, as suggested by the BSE m-cap, rose Rs 5.89 lakh crore to Rs 385.31 lakh crore compared with a valuation of Rs 379.42 lakh crore recorded in the previous session.
Here are the key reasons behind the stock market rise:
Budgetary announcements
The domestic benchmarks advanced today, buoyed by government's adherence to fiscal prudence in its interim budget. The government, in its interim budget, set a target to narrow its fiscal deficit to 5.1 per cent in fiscal 2025 and reduce its borrowings.
A majority of real estate counter also saw a sharp rise after a new housing scheme announcement for the middle class
Finance Minister Nirmala Sitharaman, in her Interim Budget 2024 speech, mentioned that the Centre will launch a scheme to help deserving sections of the middle class "living in rented houses, or slums, or chawls and unauthorized colonies" to buy or build their own houses.
Global cues
On the global front, Wall Street equities closed higher overnight and Asian markets opened higher. Investors await US non-farm payroll report for January, due to be released today after Indian market hours. The data will be crucial in guiding the Federal Reserve's timing for the start of its rate easing cycle.
Strong uptick in index heavyweights
On BSE, index heavyweight stocks such as Reliance Industries Ltd (RIL), Infosys, ICICI Bank and Tata Consultancy Services (TCS) pulled the index higher. RIL, Infosys and ICICI alone contributed positively to the around 538-point climb.
