The post-Budget rally in the benchmark equity indices has created investor wealth worth Rs 5.16 lakh crore in just three sessions on the Bombay Stock Exchange (BSE). The S&P BSE Sensex has rallied 1,604 points, or 7%, since Monday’s Budget. The 50-share Nifty50 has seen its value surge by 488 points, or 7%, in the same period. The two indices closed with solid gains of 364 and 107 points, respectively, on Thursday. “With the kind of flows we are witnessing from FIIs, it looks like 6,850 on the Nifty50 was the nearterm bottom. We are going to see fresh highs in the coming days,” said Ashish Maheshwari, director, Blue Ocean Strategic Advisors. The huge surge in buying has come mostly from FIIs, who have lapped up shares worth Rs 4,000 crore in the past two sessions. Hope for an immediate rate cut by the Reserve Bank of India has been the major trigger behind this rally. A sharp decline in India’s services PMI in February to 51.4 from 54.3 in January on Thursday indicated a slowdown in activity in the services sector, which largely caters to consumer segment. This may put additional pressure on RBI to cut interest rates to help support the economy. Experts have waged on a rate cut by the central bank in the coming days, though, they warn that if it fails to come about, that may lead to some profit booking. “I think the market is looking very strong. There is absolutely no doubt about it. If RBI does come up with a rate cut, I am reasonably confident that we will have Nifty50 touching 7,500 soon. However, if that rate cut does not materialise within the next few days, the market will take stock and there will be some profit booking,” said Sudip Bandyopadhyay, an independent market expert.