The stock markets gave a thumbs up to Finance Minister Arun Jaitley's fourth Budget and first after notes ban after the Finance Minister announced spending a record Rs 3.96 lakhs crore on building infrastructure along with tax cuts for small businesses and individuals earning up to Rs 5 lakhs per annum.
Investors cheered as Sensex and Nifty rose after the FM Arun Jaitely announced India's Union Budget 2017-18.
Speaking sectorally, the BSE auto index got much hammering, down 0.88 percent, followed by banking 0.76 percent, PSU 0.69 percent and power 0.58 percent.
The budget was focused on 10 broad issues - farmers, rural population, youth, poor and health care for the underprivileged, infrastructure, financial sector for stronger institutions, speedy accountability, public services, prudent fiscal management and tax administration for the honest.
Benchmark indices, NSE Nifty and BSE Sensex, surged almost 2 per cent on Wednesday on account of buying in frontline bluechip counters amid firm global cues.
The Sensex closed the day at 28,141, up 486 points, while Nifty50 settled at 8,716, up 155 points.
The markets believe that the budget measures would help in reviving the consumption growth that was impacted due to cash crunch post demonetisation.
Among the BSE sectoral indices, Realty index jumped the most, up 4.8 per cent, while IT index became the top loser, down 1.3 per cent. "Moreover, weak global markets are also major concern and pulled down market", the brokerage said.
Overseas, most Asian markets were trading higher as markets continue to assess the latest policies from Trump, and his take on the USA dollar.
Sectorwise, tobacco, beverages - alcoholic, finance, auto ancillaries, petrochemicals sector-related stocks remained among majors gainers on bourses today.
The index had risen 847.96 points in the past four sessions.
At closing, the BSE Realty sector was up by 4.83 per cent.