While there were no "fireworks" in India's highly-anticipated budget, investors approved of the government's various pro-growth initiatives – which ranged from boosting infrastructure investment to lowering corporate taxes – adding fuel to the country's stock market rally.
Finance Minister Arun Jaitley presented the budget on Saturday against the backdrop of sky-high expectations, with some describing it as the most important economic event for India's stock market this year.
The budget's overarching theme was ramping up growth, which Jaitley predicted would accelerate to 8-8.5 percent in the fiscal year starting in April, from 7.4 percent this year.
Many banks reiterated their bullish views on India's equity market following the budget.
Nomura, among the most upbeat, expects the benchmark Sensex to rise to 33,500 by year-end – 19 percent higher than current levels, while Citi predicts the index will end the year at 33,000. Goldman Sachs, meanwhile, forecasts the Nifty index will rise to 9,500 - a 6 percent rise from current levels.
The Sensex and Nifty have risen 7 percent and 8 percent, respectively, so far this year, after double-digit gains in 2014.