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Ahead of Budget 2019, Sensex zooms over 660 points; 3 key reasons behind rally

FE Online
sensex, bse, nse

The benchmark equity indices — Sensex and Nifty — rebounded in the afternoon trade amid F&O expiry and positive expectations from interim Budget. While BSE Sensex surged 665.44 points to finish at 36,256.69, Nifty soared 179.15 points to 10,830.95. The market analysts said the sudden rebound is due to short-covering ahead of F&O expiry and positive budget.

Tata Motors, Axis Bank shares gained more than 4% each to Rs 722.95, to emerge among the biggest Sensex gainers. Infosys shares gained more than 3.46% to Rs 750.80, while Kotak Mahindra Bank shares are trading 2.5% higher at Rs 1,252.80.

Also read: Share Market Highlights: Sensex closes 665 points up, Nifty above 10,800; Axis Bank, Tata Motors shares rally

Here are 3 key reasons behind the rise in Sensex and Nifty:


Market analysts explain the rise as a pre-budget rally. The market sentiment may have also gained weight from the recent SBI Research that said the government would meet its fiscal deficit target for the fiscal year. The fiscal deficit is expected to be at Rs 6.72 lakh crore, or 3.2 per cent of GDP, for next financial year.

Asian markets

Asian stocks rose to a four-month high after the Fed Reserve kept interest rates steady, while also discarding promises of “further gradual increases” amid signs of slowing global growth. MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 0.74 percent.


The rupee appreciated by 26 paise to 70.86 against the US dollar in opening trade Thursday, driven by weakening of the greenback in overseas markets after the US Fed kept interest rate unchanged. The US dollar weakened in overseas market after the Federal Reserve left the key US lending rate unchanged on Wednesday, and said it would be “patient” about making any further changes.