Bullish on Budget, bearish on Adani, sensex swings wild

The BSE sensex gyrated wildly on Wednesday as a bullish response to the Budget was offset by a fresh slump in Adani Group stocks. After gaining over 1,200 points by mid-session, and then nose-diving by 2,000 points, the sensex finally closed with a modest gain of 158 points at 59,708 points.
The day began on a positive note as investors waited for the FM to present the Budget. The sensex opened slightly higher and was up about 400 points when the FM started her speech.
As the Budget proposals were being announced, their expected long-term impact, and the absence of any negative surprises, enthused D-Street investors and they pushed the sensex up by over 1,200 points, to near the 61K mark. However, a sudden and sharp sell-off in Adani Group stocks emerged as a sentiment spoiler for the market and the index dived nearly 2,000 points within an hour. The crash in Adani stocks came on the back of a report that said Credit Suisse, one of Europe’s major banks, had assigned zero value to the Indian conglomerate’s bonds and was not accepting them as collateral.
However, bargain hunting in the late session, mainly by foreign funds who were aggressive sellers in the past few days, helped the sensex close up 158 points at 59,708 points. At the close of session, selling in stocks outside of the index left investors poorer by nearly Rs 4 lakh crore with BSE’s market capitalisation now at Rs 270 lakh crore, almost at the same level at which it was exactly a year ago, after the Budget was presented.

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