Sensex vaults 777 points on rate-cut hope; ITC surges 10%

As the Union Budget 2016 seeps in, benchmark indices surged ahead with Nifty50 reclaiming 7,200 mark as clamours for an out-of-turn rate-cut in repo rate by the Reserve Bank of India (RBI) grew louder.   Stock Market Trading Tips

The S&P BSE Sensex ended at 23,779, up by 777 points while the Nifty50 finished at 7,222, up by 235 points- this is the biggest single day gain in 7 years for Sensex and Niftyin absolute terms.

The government’s decision to stick to fiscal discipline has put pressure on the central bank to cut rates and spark investment into the economy. Further, budget fine prints suggest that excise duty has been raised by 10% on cigarettes,  Himanshu Tiwari Astrologer Blog
 which is in-line with street expectations of 8-10% hike while the FM said in his speech that excise duty on tobacco products is increased by 10 to 15%.

Mihir Vora, Director and Chief Investment Officer, Max Life Insurance “Against this backdrop, the finance minister did not deviate from fiscal prudence and stuck to the 3.5% fiscal deficit target. At the same time the budget also provided growth triggers.  Financial Astrology

While FY16 budget was dominated by investments and capex narrative, this year FM has given more fillip to consumption and within that, rural consumption. This will also raise the clamor for rate cuts going forward, in our view.”  Indian stock market astrology prediction

He further said, “Further, he has unveiled initiatives to build confidence with tax payers with an aim to reduce litigations and reiterated his commitment to no retrospective taxation/amendments. That said, we believe the attention will now shift to reforms outside of budget.” Sensex Astrology 

Meanwhile, the uptick in global markets also buoyed the sentiment after China's central bank has further cut the reserve requirement ratio by 0.5% in an attempt to calm investor nerves.