Benchmark equity climbed in early trade on Tuesday ahead of the Budget 2024 presentation as investors' sentiment turned buoyant amid foreign fund inflows and a rally in the US peers. At opening, the BSE Sensex climbed 264.33 points to 80,766.41, and the NSE Nifty50 rose 73.3 points to 24,582.55.
However, at 10:40 am, the benchmark indices were trading in red as investors remained cautious ahead of the union budget presentation scheduled for 11 AM.
Among the Sensex pack, UltraTech Cement, Mahindra & Mahindra, ITC, Larsen & Toubro, and NTPC were the biggest gainers. HCL Tech, Power Grid, JSW Steel, and Tata Steel were among the losers.
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“The market participants will be closely watching for any tweaks in LTCGs tax. If there are no changes in LTCG tax that will be a big relief for the market and the market is likely to react positively to that. Stock-specific reactions will depend on the Budget proposals for specific sectors," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
According to stock exchange data, foreign institutional investors (FIIs) bought equities worth Rs 3,444.06 crore on Monday.
Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023-24 on July 22. The survey outlined that the Indian economy is on a strong wicket and stable footing, demonstrating resilience in the face of geopolitical changes. It also emphasized India’s sustained post-Covid recovery, stable inflation, and a positive investment climate driven by both the public and private sectors.
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“The potential reduction in income tax rates and the increase in the income threshold to Rs 5 lakh are expected to significantly benefit the middle class by enhancing disposable incomes and boosting consumer spending. We expect that the budget will introduce policies aimed at stimulating investment, fostering innovation, and driving overall economic growth,” said Suman Bannerjee, CIO at Hedonova.
On Monday, the Sensex fell 102.57 points or 0.13 per cent to settle at 80,502.08. The NSE Nifty slipped 21.65 points or 0.09 per cent to 24.509.25.
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