Sensex surge after the budget; FMCGs and auto stocks on all-time high

Chennai, Feb 4th: Consumer goods, two-wheeler, and real estate stocks have been the biggest gainers in the market since the interim budget was announced by Finance Minister Piyush Goyal on Friday.

The benchmark indices Sensex and Nifty ended higher after  Budget 2019 announcements provided a major boost to sentiments. The Sensex closed 212 points higher at 36,469.43, while the Nifty closed just short of the 10,900-mark.

“Individual taxpayers having taxable annual income up to Rs 5 lakhs will get a full tax rebate and therefore will not be required to pay any income tax. As a result, even persons having gross income up to Rs 6.50 lakhs may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance etc.,” FM said in the speech.

This will not only increase liquidity in the market but also enable increased discretionary spending by rural and urban middle-class households.

Sensex closed 212 points higher on Friday

According to a report in the Economic Times, analysts are betting big on stocks like Dabur India, ITC, Jubilant FoodWorks, Hindustan Unilever, LIC Housing Finance, Crompton Greaves Consumer Electricals, TTK Prestige and Oberoi Realty

Dabur India, Jubilant FoodWorks and LIC Housing Finance stocks rose 5.29%, 11.52% and 5.61% respectively on Friday.

Nifty Consumption index is up nearly 2 percent with most of the constituents of the index trading in green.

Shares of defence companies soared in trade as the government announced a defence budget of Rs 3 lakh crore for FY20. The likes of Larsen and Toubro, Bharat Electronics, Walchandnagar Industries, Reliance Naval and Bharat Dynamics, among others, rose a little over 1 percent.