Market Watch: Will the post-Budget rally on Dalal Street continue?

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Nikhil Agarwal and here are the top headlines at this hour.

HDFC Q3 net profit drops 65% to Rs 2,926 crore, revenue falls 42%
Gold extends declines from Budget day; silver tumbles as Reddit fever cools
India’s near-term fiscal deficit target higher than expected: Fitch
Post-Budget rally makes equity investors richer by over Rs 4 lakh crore
LIC IPO likely after October

Let us take a quick glance at what happened on the Dalal Street today.

The relief rally triggered by the Union Budget continued for the second day today as investors rejoiced at the growth impetus given by the finance minister to the economy.

While Monday’s gains were driven largely by a short squeeze, today’s were led by hefty buying from foreign institutional investors and strong cues from global markets.

Shares of banks and infrastructure stocks remained at the forefront of the rally as the Nifty50, Sensex and Nifty Bank ended at their record highs.

Sensex jumped nearly 1,200 points for the day, while Nifty topped 14,600.

Shares of Tata Motors soared 15%, Shree Cement 8% and UltraTech 7%. Indigo Paints made a strong debut on the bourse with eye-popping gains of over 100%.

In the broader market, two stocks rose for every one stock that declined.

We caught up with Ajit Mishra of Religare Securities to understand his views on the market.

Welcome to the show, Mr. Mishra!
1) Do you think this Budget frenzy may continue for some more time? What would decide the market direction going ahead?

2) Can you name a few largecaps that you think will benefit the most from the Budget announcements?

To understand how the market is shaping on the technical charts, we caught up with Rohit Singre of LKP Securities.

1) How would you see the two large bullish candles on the daily scale? What’s the next logical target for the index?

2) What is your reading of Bank Nifty charts?

Asian equities ended nearly 1.5% higher while the European markets were trading in the black in the first few hours of trade. US stock futures were hinting at a strong start for US equities later in the day.

That’s all for today. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!