Key indices end flat amid Interim Budget
PSU stocks hog limelight, while capital goods, metal shares drag; Historically the markets don’t react too much to interim Budgets; General elections in the upcoming months will be a bigger market mover; Mkt sentiment also dampened after the US Federal Reserve indicated rate cut in March unlikely
image for illustrative purpose
Muted Trading
- BSE Sensex declined 106.81 pts or 0.15% to 71,645.30
- During the day, Sensex gyrated between a high of 72,151.02 and a low of 71,574.89
- Nifty dipped 28.25 pts or 0.13% to 21,697.45
- Nifty oscillated between the day’s high of 21,832.95 and a low of 21,658.75
- L&T, UltraTech Cement, JSW Steel, Titan, Bajaj Finance, Wipro, Tech M and Nestle were major laggards
- Maruti, Power Grid, Axis Bank, SBI, NTPC, HDFC Bank, ITC and IndusInd Bank among gainers
Mumbai: Benchmark equity indices Sensex and Nifty closed lower on the Budget day on Thursday as investors resorted to profit-taking in capital goods, metal and realty shares amid no big announcements by Finance Minister Nirmala Sitharaman.
After shedding early gains, the markets turned volatile during the presentation of the interim Budget, where in the capital expenditure outlay was marginally hiked but there were no major announcements. The 30-share BSE Sensex settled lower by 106.81 points or 0.15 per cent at 71,645.30. During the day, it gyrated between a high of 72,151.02 and a low of 71,574.89. The Nifty dipped 28.25 points or 0.13 per cent to 21,697.45. It oscillated between the day’s high of 21,832.95 and a low of 21,658.75.
“The domestic market was marginally disappointed by lower-than-expected infra spending in the interim Budget. However, the government’s commitment to fiscal prudence, targeting a fiscal deficit of 5.1 per cent for FY25, is expected to improve the outlook on economic ratings,” adds Vinod Nair, head (research), Geojit Financial Services.
“The policy intent was crystal clear as seen through the selective allocation of resources, with stronger emphasis on sectors of rural and middle-class housing and Green Energy,” said Amar Ambani, Executive Director, YES Securities.
“It is noteworthy is that this is a budget entirely focused on fiscal consolidation and not populism, which was expected to be in focus because of the upcoming general elections,” said Sahil Kapoor, head (products and market strategist) at DSP Mutual Fund, on Budget.
Meanwhile, the US FED’s decision to maintain rates without clear guidance on future cuts dampened market sentiments, he added. “Equity indices lost all their early gains during the presentation of the interim Budget today to end in the red. Historically the markets don’t react too much to interim Budgets and that pattern was maintained this time as well. The elections in the upcoming months will be a bigger market mover,” said Avdhut Bagkar Technical and Derivatives Analyst, StoxBox.
