Zee Media Bureau
New Delhi: The benchmark Sensex went from strength to strength as it rallied over 1000 points in last two days after buying gained momentum across sectors led by FMCG, banks and industrials post the Budget announcement.
Here are five reasons why the stock market has rallied so much.
1. Market sentiment was boosted by the government's thrust on infrastructure sectors in the Union Budget 2016-17 and its decision to stand by the fiscal deficit target that it had set for the next fiscal.
2. The talk of a rate cut by the Reserve Bank gained momentum following the government's commitment to the fiscal deficit road map as displayed in the Budget.
3. Rupee's rise against the dollar has also supported the upbeat mood. The rupee added to its gains by rising 11 paise to a fresh three-week high of 67.74 against the dollar today on continued selling of the US currency by banks and exporters and a robust opening in the equity market.
4. Sentiment remained upbeat after the Union Budget provided a higher outlay for infrastructure and farming sectors.
5. European and Asian stock markets have also risen because fresh stimulus from the Chinese central bank lifted hopes for the world's number two economy. This has also impacted the domestic market.