Sensex jumps over 100 points ahead of Budget 2019
The Bombay Stock Exchange (BSE) benchmark Sensex today jumped over 100 points ahead of the Budget presentation by acting Finance Minister Piyush Goyal amid heavy buying by foreign portfolio investors. The 30-share index was trading 119.01 points, or 0.33%, higher at 36,375.70. Similarly, the 50-share National Stock Exchange (NSE) Nifty rose 34.15, or 0.32%, to 10,865.10. Read the details here.
Yesterday, the 30-share Sensex rallied 665.44 points, or 1.87%, to close at 36,256.69 whereas the broader Nifty soared 179.15 points, or 1.68%, to 10,830.95. Top gainers in the Sensex pack include Hero MotoCorp, HCL Tech, Bharti Airtel, Bajaj Finance, Infosys, HDFC, HUL, M&M, L&T, ITC, and Maruti, rising up to 2.91%. On the other hand, Vedanta was the biggest loser on Sensex.
Vedanta cracked over 18% after the metals and mining giant reported a 25.54% decline yesterday in consolidated net profit at Rs. 1,574 crore for the December 2018 quarter, on the back of higher expenses and drop in commodity prices. Other losers in the list include PowerGrid, ONGC, Axis Bank, Kotak Mahindra Bank, and Sun Pharma, shedding up to 1.14%.
According to Hemang Jani, Head Advisory at Sharekhan by BNP Paribas (retail banking company), the government might look to boost the rural and agricultural sector ahead of the general election. "Expect the government to go in for a populist Budget," he said. "However, market participants will closely weigh in the risk of a higher fiscal deficit and its impact on the market," he added.
It's a classic macroeconomic-theory to expect the government to come forward with fiscal stimulus during times of economic weakness, said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management. A looming election and aggressive opposition add to the pressure to deliver a meaningful relief-package, he said, adding should the Budget disappoint, investors' attention is likely to revert to concerns centered around slowing growth and elections.
Meanwhile, on a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs. 3,006.41 crore yesterday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs. 1,634.32 crore, provisional data available with BSE showed. The domestic market, however, will continue to be volatile ahead of the interim budget that is to be announced today, traders said.
Elsewhere in Asia, Shanghai Composite Index jumped 0.77%, Kospi gained 0.22%, and Japan's Nikkei was up 0.24% while Hong Kong's Hang Seng slipped 0.21% in early trade. On Wall Street, Dow Jones Industrial Average was marginally lower at 24,999.67 yesterday. The rupee, meanwhile, depreciated by 8 paise against USD to 71.16. The benchmark Brent crude futures were flat at $60.86 per barrel.