Mumbai: The BSE Sensex soared over 2,000 points on Monday afternoon after Finance Minister Nirmala Sitharaman completed her first digital presentation of the Union Budget for FY21-22.
Around 1.50 p.m., Sensex was trading at 48,346.88, higher by 2,061.11 points or 4.45 per cent from its previous close of 46,285.77 points.
The Nifty50 on the National Stock Exchange was trading at 13,826.45, higher by 191.85 points or 1.41 per cent from its previous close.
Banking and finance stocks surged after Sitharaman's third budget in which she announced that two public sector banks will be privatised apart from the IDBI Bank and one general insurance company.
The government also announced to establish a "bad bank" for management and monetisation of stressed assets.
Giving a major push to infrastructure development in the backdrop of the Covid pandaemic, the Finance Minister announced to set up a Development Finance Institution (DFI) with a capital of Rs 20,000 crore.
To provide ease of compliance, Budget 2021 has also proposed to make dividend payment to REIT/ InvIT exempt from Tax Deduction at Source (TDS).
Sitharaman announced that the government will launch a Securities Market Code in a bid to streamline the securities market.
The Code will include SEBI Act, Govt Securities Act and Depositories Act. All these Acts will be amended for the Code.
Presenting the budget speech in a little under two hours, she also also announced that capital market regulator SEBI will be notified as regulator for a gold exchange.
In another major announcement for financial investors, Sitharaman said that an investors' charter will be launched which will be outline the rights of the financial investors.