Sensex Falls 150 Points, Nifty at 24,450: Live Budget 2024 Updates

India’s stock markets are currently experiencing significant volatility as Finance Minister Nirmala Sitharaman delivers the Union Budget for the seventh consecutive year. Her speech, which will reveal the NDA government’s intentions regarding capital expenditure and the ease of conducting business, is being closely monitored by investors.

Domestic institutional investors (DIIs) sold shares valued at ₹1,652.34 crore, while foreign investors acquired shares valued at ₹3,444.06 crore on July-22. The market’s anticipation of the budget’s impact is evident in this trading activity.

Market Performance and Key Indices

The recent volatility is a consequence of investors’ preparations to capitalize on anticipated government announcements. Trading at 24,723.50, the Gift Nifty futures were marginally higher than the Nifty 50’s Monday close of 24,509.25.

As Asian stocks recovered from one-month lows, Taiwan’s market ended a five-day losing stretch as semiconductor shares surged. While Japan’s Nikkei index stabilized, it gained 0.3%, MSCI’s broadest index of Asia-Pacific equities outside Japan increased by 0.55%. In the United States, the Nasdaq, which is significantly impacted by technology, surged by 1.6%, while the S&P 500 increased by 1.1%. This increase was primarily attributed to a rebound in extensively sold equities.

Impact of International Markets

The announcement of President Joe Biden’s reelection bid had a minimal impact on the markets. The release of earnings reports from significant corporations, such as Tesla and Alphabet, is greatly anticipated by investors. As TSMC shares surged by 2%, Taiwan’s benchmark index experienced an approximate 1.7% percentage increase. The semiconductor manufacturers in South Korea, Samsung and SK Hynix, also experienced a rebound in response to resilient demand, despite political uncertainties.

The yields on US bonds experienced a modest increase overnight; however, they remained consistent in Asia. The yields on the 10-year benchmark index were 4.25%, while the two-year benchmark index was 4.51%. Markets have anticipated two rate cuts in the United States during the latter half of the year, which has resulted in the dollar maintaining a relatively stable position in reaction to the election uncertainties.

More Comprehensive Market Indices and Sectoral Performance

In India, all sectors except for FMCG and Realty experienced declines. Consequently, the Metal index encountered the most significant decline. 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.

The Sensex was down 55.16 points, or 0.07%, at 80,446.92, and the Nifty was down 30 points, or 0.12%, at 24,479.25, as of 10 a.m. As the broader market indices also experienced losses, the BSE MidCap and BSE SmallCap saw 0.28% and 0.16% losses, respectively.

Important Announcements and Stock Movements

Paytm and Axis Bank have formed a partnership to provide its merchant network with EDC devices and POS solutions. In spite of this, Paytm’s shares experienced a decline following the announcement. Upon the acquisition of a contract for 116 megawatts of solar installations in Gujarat, Gensol Engineering’s stock price rose by 5%. Approximately ₹600 crore in revenue is expected to be generated by these projects.

As the non-executive, part-time Chairman of RBL Bank, Chandan Sinha will succeed Prakash Chandra, who will conclude his tenure on August 2. In response to this information, RBL Bank’s shares experienced a 1.5% decline.

Future Prospects and Investor Expectations

It is anticipated that Finance Minister Sitharaman’s budget speech will prioritize the rural economy, infrastructure development, housing, and defense sectors. Market specialists are in anticipation of the potential elimination of the Long Term Capital Gain Tax, while maintaining the current capital gain tax structure. The Modi 3.0 government’s broader economic strategies are also being intently monitored by investors.

In summation, the Indian stock market is currently anticipating significant volatility and activity in anticipation of the 2024 Union Budget. The potential impact of the detailed policy pronouncements on various sectors is eagerly anticipated by investors and analysts.