Sensex breaks post-budget record with 623-point surge
02 Mar 2011
Though the sensex failed to achieve much by way of a record-breaking performance on Monday, it made up for this on Tuesday when it rose sharply by more than 600 points. On Monday, it appeared to be heading to record the sharpest-ever rise. But, then, it flagged and closed with a modest 122 points gain over its earlier closing.
On Tuesday, however, at the end of the day, it was 623 points up, breaking the previous record of 343 points (last year), by an almost 100 per cent margin. In the process, it also recorded the biggest gain in 21 months.
In addition to a budget that offered a few pleasant surprises and very few on the negative side, the day's spurt came on a strong showing from the auto sector, which recorded very encouraging numbers pointing to healthy growth in the core sector.
The impetus also came from exports in January, as also an indication of demand in the manufacturing sector. At close of trading, investors were richer by Rs1,90,000 crore with BSE`s market capitalisation at Rs65,30,000 crore.
The 3.5 per cent rise in sensex came mostly on FII buying, according to BSE data. After withdrawing $1 billion (about Rs4,500 crore) in February from the secondary market, foreign funds chose to buy, putting in Rs419 crore, on Tuesday.
The inflow follows six sessions of outflows, according to BSE data. The day also saw domestic funds turning net buyers at Rs96 crore.