Equity benchmark Sensex scaled the 50,000-mark for the second time in a week on Tuesday, riding high on Union Budget 2021-22 and going ahead, global trends and corporate earnings would guide its future course, analysts said.
Markets roared back to life on Budget day (February 1) after falling since January 21. Cheering the Budget proposals, the BSE benchmark Sensex zoomed 2,314.84 points or 5 per cent to close at 48,600.61 on Monday. This was the best Budget-day gain for the markets since 1997. Continuing its winning ways on Tuesday, the benchmark jumped 1,197.11 points or 2.46 per cent to close at 49,797.72. During the day, it hit a high of 50,154.48, registering a gain of 1,553.87 points.
“It has been a picture perfect rally in the last two sessions with the broader indices clocking record Budget Day gains in last over 20 years and extending them today as well. Although some profit-booking can be expected, but we expect stock-specific action to continue,” said Rahul Sharma, Head - Technical & Derivatives Research, JM Financial Services.
Ajit Mishra, VP - Research, Religare Broking Ltd, said this Budget rally is expected to continue. However, participants should be selective in their approach now. Going ahead, global cues and corporate earnings would also be on the radar, he added.