Indian investors richer by Rs 10 tn in just 2 days

Indian investors have become richer by over Rs 10 trillion in past two days, as equity markets on Monday replicated their rally on Friday, gaining about 3% mostly on the back of buying by the domestic investors.

On Monday, the markets followed up Friday’s gain of Rs 6.8 lakh crore, with a gain of Rs 3.5 lakh crore – taking cumulative gains to Rs 10.35 lakh crore, which has been unprecedented.

The boost to markets comes after Finance Minister Nirmala Sitharaman announced tax cuts for the corporates – which is likely to result in savings to India Inc worth about Rs 40,000 crore.

The benchmark Index of BSE – Sensex opened 829 points higher on Monday at 38,844.00 points, before rallying further by over 1,300 points during the day. The index closed at 39,090.03, up 1,075.41 points (2.83%). On BSE, the bank index BANKEX was the biggest gainer, jumping about 5.68%, while IT index was the biggest loser, losing 3.29%.

The overall sentiment in the markets was also highly positive, with 1,638 advances against 972 declines.

Similarly, the broader index NSE’s Nifty50 closed at 11,603.40, 329.20 points (2.92%).

The brokerages have also revised the targets for indices higher after the stimulus package was announced.

The initial numbers suggest that the buying spree was led by the domestic institutional investors, as rupee remained more or less stable. At the time of filing this copy, the domestic currency was trading with a gain of 1 paise at 70.93 against the greenback.

On the other hand, the bond market remained volatile on worries of fiscal funding of Rs 1.45 lakh crore stimulus package announced by the Finance Minister. The 10-year G-sec yields, at the time of filing this copy stood 6.737%.