The market fluctuated to the extent of index BSE Sensex surging almost 2,000 points above as Finance Minister Nirmala Sitharaman read out budget for the fiscal year 2021-2022.
The Bank stocks rallied in afternoon trading with IndusInd being the top gainer, increasing over 10%, followed by by ICICI Bank, HDFC, Bajaj Finserv, M&M and SBI. ICICI Bank is up 11%, SBI by 8.60%, Bank of Baroda is up 6.39% and RBL Bank is up 6.10%.
Bajaj Finance is up 900 points.
Nifty bank index has surged over 6% which is the highest in 9 months. The premium on Nifty Bank 32,000 call option contract swelled over 400% to Rs 816. On the greener side, premium on Nifty Bank 30,000 strike price dropped 86% to Rs 52.
Nirmala Sitharaman while presenting the Budget before Parliament announced that Life Insurance Corporation (LIC) will come up with an IPO in 2021-22.
AK Prabhakar, head of research at IDBI Capital, said, “The markets are rallying on the back of no negative surprises in the Budget speech by Finance Minister Nirmala Sitharaman.”