The Sensex has declined by 150 points, while the Nifty is currently at 24,450. Updates to the 2024 Budget in Real Time
As Finance Minister Nirmala Sitharaman delivers the Union Budget for the seventh consecutive year, India’s stock markets are undergoing substantial volatility. Investors are intently monitoring her speech to gain insight into the NDA government’s plans for capital expenditure and the ease of conducting business.
On July 22, domestic institutional investors (DIIs) sold shares valued at ₹1,652.34 crore, while foreign investors acquired shares valued at ₹3,444.06 crore. The market’s anticipation of the budget’s impact is evident in this trading activity.
Key Indices and Market Performance
Investors have been positioning themselves to capitalize on anticipated government announcements, which has resulted in the recent market volatility. The Present The Nifty futures were trading at 24,723.50, which was marginally higher than the Nifty 50’s close of 24,509.25 on Monday.
Semiconductor shares contributed to Taiwan’s market’s conclusion of a five-day losing trend, as Asian stocks rebounded from one-month lows. The Nikkei index of Japan experienced a 0.3% increase, indicating that it has stabilized. MSCI’s broadest index of Asia-Pacific equities outside Japan experienced a 0.55% increase. The Tech-heavy Nasdaq and the S&P 500 in the United States experienced a 1.6% and 1.1% increase, respectively, as a result of a rebound in heavily sold equities.
The Impact of International Markets
The markets were not significantly affected by President Joe Biden’s announcement of his reelection bid. Investors are anticipating the release of earnings reports from significant corporations, including Tesla and Alphabet. TSMC shares experienced a 2% increase, which contributed to a 1.7% increase in Taiwan’s benchmark index. Samsung and SK Hynix, South Korean semiconductor manufacturers, also experienced a rebound in response to robust demand, despite political uncertainties.
Overnight, US bond yields experienced a slight increase; however, they remained consistent in Asia. 10-year benchmark yields were 4.25%, while two-year benchmark yields were 4.51%. The dollar has maintained a relatively stable position in the face of election uncertainties, as markets have anticipated two rate cuts in the United States during the latter half of the year.
Sectoral Performance and More Comprehensive Market Indices
The Metal index encountered the most substantial decline in India, with all sectors except FMCG and Realty experiencing declines. Auto, FMCG, private banks, real estate, and healthcare were the top sectoral gainers, while financial services, media, PSU Bank, consumer durables, and oil & gas were the top sectoral losers.
At 10 a.m., the Sensex index was down 55.16 points, or 0.07%, at 80,446.92, and the Nifty index was down 30 points, or 0.12%, at 24,479.25. The BSE MidCap and BSE SmallCap experienced losses of 0.28% and 0.16%, respectively, as the broader market indices also turned red.
Key Announcements and Stock Movements
Paytm has entered into a partnership with Axis Bank to supply its merchant network with POS solutions and EDC devices. Paytm’s shares experienced a decline subsequent to the announcement, despite this. Gensol Engineering’s stock price increased by 5% following the acquisition of a contract for 116 megawatts of solar projects in Gujarat, which are anticipated to generate approximately ₹600 crore in revenue.
RBL Bank has announced that Chandan Sinha will assume the role of non-executive, part-time Chairman, succeeding Prakash Chandra, whose tenure will conclude on August 2. RBL Bank’s shares experienced a 1.5% decline as a result of this information.
Investor Expectations and Future Prospects
The rural economy, infrastructure development, housing, and defense sectors are anticipated to be the primary focus of Finance Minister Sitharaman’s budget speech. While maintaining the present capital gain tax structure, market specialists are anticipating the potential elimination of the Long Term Capital Gain Tax. The Modi 3.0 government’s broader economic strategies are also being intently monitored by investors.
In summation, the Indian stock market is anticipating substantial volatility and activity in anticipation of the 2024 Union Budget publication. The potential impact of the detailed policy pronouncements on various sectors is eagerly anticipated by investors and analysts.
