Sensex Jumps 790 Points, Nifty Crosses 11,000; Nirmala Sitharaman's 'Mini-Budget' Sops to Boost Economy Help Market Rally

Mumbai, August 26: The Sensex has jumped 793 points on Monday to end the day at 37,494.12 up 792.96 (2.16 percent). The rally has been on the back of US President Donald Trump's comments on trade negotiations with China and FM Nirmala Sitharaman’s ‘mini-Budget’ proposal. Nifty ended the day at 11,057.85, up 228.50 points and (2 percent). Nirmala Sitharaman Announces Measures to Boost Indian Economy Amid Slowdown, Rolls Back Surcharge on FPIs, Removes Angel Tax on Start-Ups; Check Full List of Announcements.

On Friday, Sitharaman offered sops to the ailing banking, auto and NBFCs sectors and eased FPI concerns by rolling back tax surcharge announced in the Budget. The Finance Minister's announcement was on expected lines and analysts are confident that this will provide the market with a much-needed boost.

The major gainer of the day was the banking sector. Yes Bank stock jumped 6.33 percent at Rs 88, HDFC Bank was up 4.29 percent and ICICI Bank increased by 4 percent. However, in spite of the massive market rally, the auto stocks continued to be in the red. Bajaj Auto, Maruti, Tata Motors, and Hero Moto Corp ended the trading session by remaining marginally down.

According to a report on Economic Times, several factors contributed to the market rally. Other than Trump's comment on Trade talks, there is optimism in the market ahead of the RBI meet and all eyes are on the housing sops. FM announced that the government will unveil a fresh set of measures by the middle of the next week, aimed at resolving the problems faced by homebuyers and another set of steps to take care of pending issues hurting economic growth.

(The above story first appeared on LatestLY on Aug 26, 2019 04:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).