Indian investors cheer budget  2021 as sensex gained  over 2000 points and nifty jumped over 500 

The Indian markets recorded their sharpest-ever Budget rally (in absolute terms) on Monday, ending the session 5 per cent up, as investors cheered the Budget 2021 presented by Finance Minister Nirmala Sitharaman in the Parliament today.

The Sensex and Nifty surged as Sitharaman announced schemes for various sectors and categories of people. In terms of points, the Sensex gained over 2,314.84 points at 48,600.61 and Nifty surged 646.60 points to above 14,281.20.

On the Sensex, IndusInd Bank was the top gainer, rallying over 10 per cent, followed by ICICI Bank, HDFC, Bajaj FinServ, M&M and SBI.

To push growth via infrastructure creation, Sitharaman proposed raising the government's capital expenditure for FY 2021-22 by 34.5 per cent to ₹5.5 lakh crore, which is quite massive .

Sitharaman also said the government would infuse ₹20,000 crore into public sector banks in 2021-22, to meet the regulatory norms.

She also announced that the government will set up a company to manage bad debt for banks, which is expected to reach record levels this year. The firm will hold problem loans for banks, which can then be sold on to investors at a reduced price, according to the plan outlined by the finance minister in her budget speech on Monday , February ,1.

According to Reserve Bank of India's Financial Stability Report published last month, the non-performing assets will rise to 13.5 per cent of total advances by the end of September from 7.5 per cent a year ago, the government has already been looking to reduce its stake in some lenders to raise much-needed cash. Truely the Budget rightly decided to focus on economic growth by raising expenditure and allowing for a wider fiscal deficit in these pandemic times.