Indian shares extend sharp post-budget gains, HDFC Bank leads

Infrastructure firm Larsen & Toubro climbed 6%.

Indian shares extended their post-budget gains to a second session on February 2, led by advances in finance and infra stocks, as investors cheered the governmentโ€™s move to step-up spending to aid the economyโ€™s recovery from the COVID-19 pandemic.

The NSE Nifty 50 index rose 2.14% to 14,586.55 by 9.22 a.m., while the benchmark S&P BSE Sensex was up 2.1% at 49,621.80. Both the indexes had gained 4.7% and 5%,respectively, after the federal budget was announced on February 1.

India boosted healthcare spending by 135%, lifted caps on foreign investment in its vast insurance market, and increased capital expenditure for 2021/2022 by 35% in its federal budget.

Among individual shares and sectors, the Nifty Bank Index rose as much as 3.9% to a record high, boosted by a 6.6% jump in top private-sector lender HDFC Bank.

Infrastructure firm Larsen & Toubro climbed 6%.

Jaguar Land Rover parent Tata Motors gained 6.6%and was the top percentage gainer on the Nifty 50 after reporting a 27.6% rise in domestic sales in January.

The Nifty Auto index rose 2.2%, also supported by a new vehicle scrappage policy announced in the budget.

Mortgage lender Housing Development Finance Corp. added 3.4% ahead of its quarterly results.

In broader Asian markets, shares gained on increased optimism around stimulus packages and a global economic recovery.

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