Indian benchmark equity indices traded on a flat note after opening in the red on Monday, primarily due to Reliance Industries, Wipro, and Kotak Mahindra Bank results that fell short of market expectations. The market also witnessed increased volatility ahead of the Union Budget 2024 scheduled for Tuesday, July 23.
At 10:55 AM, the BSE Sensex was trading 113.33 points or 0.14 per cent higher at 80,717.98. The NSE Nifty 50 Index was trading at 39.95 points or 0.16 per cent higher at 24,573.20.
Among the 30-share Sensex pack, Reliance Industries, Wipro, Kotak Mahindra Bank, Larsen & Toubro, ICICI Bank, IndusInd Bank, and Axis Bank were the biggest laggards.
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Finance Minister Nirmala Sitharaman will present the Economic Survey document in Parliament today. The Economic Survey 2023-24 will be presented in Lok Sabha at 1 pm and in Rajya Sabha at 2 pm, followed by a press conference by CEA V Anantha Nageswaran.
“Budget session is an important destination in our democracy's proud journey, a government has come back to power for a third term after 60 years," Prime Minister Narendra Modi said ahead of the Budget session of Parliament today.
“We are working to gradually realise the guarantees I have given," Modi said.
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"Going into the Budget the market will be trading cautiously. The pressure on the broader market is likely to continue since there is more scope for profit booking. It is important to understand that the market expects a positive Budget which is growth-oriented and fiscally prudent with income tax reliefs for the middle class,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“Also the market expects status quo on the Long Term Capital Gains taxation. If there is any disappointment in these areas the market can react negatively. On the other hand, if the Budget delivers on expectations, aggressive retail buying can lift the market to new highs. President Biden opting out of the presidential race is unlikely to influence the market now. Market will wait for clarity to emerge on Trump’s winning chances," he added.
On Friday, the Sensex touched a fresh all-time high of 81,587.76 in the early trading but failed to carry forward the gaining momentum and tanked 738.81 points or 0.91 per cent to settle below the 81,000-mark at 80,604.65.
According to exchange data, foreign Institutional Investors (FIIs) bought equities worth Rs 1,506.12 crore on Friday.
