5 Reasons Why Sensex Surged 617 Points Today

Yields on benchmark government bonds had risen as much as 24 basis points since January 31, the day before the Budget was presented.

Last Friday, when RBI Governor Shaktikanta Das said the cash reserve ratio for banks would go back up by a percentage point in a staggered manner, yields jumped as much as seven basis points. It closed at 6.08% on Friday.

Yields began to rise while Das was speaking and at an auction later that day the RBI rejected all bids for Rs 22 billion of notes while underwriters had to buy Rs 8.8 billion of two other papers on sale.

Yields on the benchmark 10-year bond surged 17 basis points in all last week, its biggest jump since April.

We will keep you updated on the latest developments in this space. Stay tuned.

Speaking of stock markets, note that the Budget announcements cheered Dalal Street last week as the NSE Nifty hit an all-time high of 15,014 on Friday. The index surpassed its previous highs today and rose as much as 1.4% to 15,160.

Now, the important question on traders' minds is does the market have enough steam left to extend last week's gains fueled by the budget announcements?

Moving on to stock-specific news...

Shree Cement was among the top buzzing stocks today.

Shree Cement today joined the elite club of companies with Rs 1-trillion market capitalization on the BSE after its share price hit a new high of Rs 28,281, rallying 5% in intra-day trade.

Shree Cement became the second pure cement company after UltraTech Cement to achieve the feat.

In the past six trading sessions, Shree Cement's share price has surged as much as 23% after the company reported healthy EBITDA growth of 28.2% year-on-year (YoY) to Rs 10.9 billion driven by improved sales volume and lower production costs.

Shree Cement reported a 102% YoY rise in its net profit to Rs 6.3 billion for the quarter ended December.

Shree Cement's share price ended the day up by 4.8%.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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