Investors' wealth rises by Rs 2.41 lakh cr as stocks zoom following stimulus package announced by govt

  • The BSE benchmark Sensex zoomed 792.96 points or 2.16 percent to close at 37,494.12

  • Led by the gain in stocks, the market capitalisation of BSE-listed companies jumped Rs 2,41,975.59 crore to Rs 1,40,34,462.19 crore at the close of trade

  • From the 30-share Sensex pack, 22 closed the day with gains led by YES Bank, HDFC, Bajaj Finance and HDFC Bank

New Delhi: Investor wealth rose by Rs 2.41 lakh crore on Monday after a huge rally in the broader market following a slew of measures announced by the government to boost the economy.

The BSE benchmark Sensex zoomed 792.96 points or 2.16 percent to close at 37,494.12.

Led by the gain in stocks, the market capitalisation of BSE-listed companies jumped Rs 2,41,975.59 crore to Rs 1,40,34,462.19 crore at the close of trade.

"Markets recovered sharply amid volatility and gained over 2 percent, tracking favourable local cues and supportive global markets. It opened gap-up mainly in reaction to announcements made by the finance minister on Friday, however lingering concern over the trade war escalation pared all gains in no time.

 Investors wealth rises by Rs 2.41 lakh cr as stocks zoom following stimulus package announced by govt

Representational image. Reuters.

"It again regained strength as the day progressed, thanks to news that the US and China could restart the trade negotiation," said Ajit Mishra, Vice President, Research, Religare Broking.

From the 30-share Sensex pack, 22 closed the day with gains led by YES Bank, HDFC, Bajaj Finance and HDFC Bank.

At the BSE, 1,705 stocks advanced, while 811 declined and 123 remained unchanged.

Giving in to the demands of overseas investors, Finance Minister Nirmala Sitharaman on Friday announced a rollback of enhanced surcharge on foreign portfolio investors levied in the Budget.

The Centre also announced a raft of measures to revive growth momentum, including a package to address distress in the auto sector and upfront infusion of Rs 70,000 crore into public sector banks.

"Markets reacted positively to a slew of measures announced by Finance Minister at the end of last week; financial markets rejoiced much-awaited withdrawal of FPI surcharge. The measures taken to improve liquidity and push the ailing auto sector are likely to augur well for the economy.

"Additionally, on the global front, US President Donald Trump welcomed China's desire for the deal on ongoing trade war at the G-7 summit and the two countries would start negotiating soon. This has given a boost to global financial markets, India included," said Arun Thukral, MD & CEO, Axis Securities.

Updated Date: Aug 26, 2019 18:23:25 IST