Sensex, Nifty close higher after budget-driven slide; consumer stocks shine

Reuters New Delhi, India Feb 03, 2020, 05.24 PM(IST)

Bombay Stock Exchange Photograph:( Zee News Network )

Story highlights

The broader NSE Nifty 50 index ended 0.39% higher at 11,707.90, while the benchmark S&P BSE Sensex closed 0.34% higher at 39,872.31.

Indian stock indexes closed higher on Monday, as auto and consumer shares gained and helped the markets recover from the previous session's bruising selloff as a reaction to the federal budget.

The broader NSE Nifty 50 index ended 0.39 per cent higher at 11,707.90, while the benchmark S&P BSE Sensex closed 0.34 per cent higher at 39,872.31.

Stock indexes fell on Saturday to their lowest closing level in more than three months after the budget failed to address key concerns among investors over taxes on long-term capital gains.

Also read: Nifty, Sensex end lower ahead of budget; energy stocks lead losses

On Monday, the Nifty Auto index gained 1.37 per cent, and shares in the country's top automaker Maruti Suzuki Ltd rose 2.9 per cent, while those in peers Bajaj Auto and Mahindra and Mahindra gained 4.5 per cent and 2.5per cent respectively.

Consumer goods stocks also gained after the budget introduced tax cuts for individual taxpayers, a move aimed at providing more disposable income for consumers.

Consumer products maker Hindustan Unilever Ltd jumped 5 per cent, while cookie maker Britannia Industries Ltd climbed 4.3 per cent.

However, hotels-to-cigarettes conglomerate ITC Ltd slid 5.2 per cent after the budget proposed raising taxes on cigarettes.

Meanwhile, world shares sank to their lowest in seven weeks, dragged down by a plunge in Asian stocks on their first trading day after a long break on fears the coronavirus epidemic would hit demand in China.