InvestorQ : What explains the rapid 1200 points rally in the Sensex in the last two days after crash post the budget announcement?
prachi Patwardhan made post

What explains the rapid 1200 points rally in the Sensex in the last two days after crash post the budget announcement?

Answer
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8 months ago


The Sensex lost over 1000 points in the immediate aftermath of the budget announcement but has recovered all of these losses and more in 2 days. For example, the news of a cure for the Chinese Coronavirus helped the markets. Also, oil falling to $54/bbl helped Indian markets as India still relies on imported oil to the tune of nearly 85% of its daily oil needs. In addition, the consumption stocks have rallied after the tax tweaks were expected to positively impact the Indian consumption stocks like FMCG and consumer durable stocks.