Sensex, Nifty LIVE Updates on Union Budget 2021: As predicted earlier, benchmark indices Sensex and Nifty opened on a bullish note on Monday, ahead of the announcement of Union Budget 2021. SGX Nifty on the Singapore Exchange recovered and traded higher by 30 points, indicating a positive start in domestic grounds today. BSE benchmark index S&P Sensex, traded 450 higher at 46,730 and NSE Nifty 50 index gained 111 points to 13,745. Union Finance Minister Nirmala Sitharaman is set to present the eighth Union Budget under the ruling BJP government on February 1, 2021, where she will unveil plans to boost the economy battered by COVID-19 pandemic. Ahead of the presentation of the Budget, the Economic Survey 2021 was tabled in Parliament on January 29. Last Friday, S&P BSE Sensex, tumbled 588.59 points or 1.26% to 46,285.77. The Nifty 50 index lost 182.95 points or 1.32% to 13,634.60. With no major boost for industry, budget 2020 had failed to cheer the Dalal street as the market witnessed its biggest fall on February 1 since 2009. On last year's budget announcement, Sensex had crashed 2.43% and closed right below 40K, as investors lost around Rs 3.6 lakh crore of wealth on BSE.
Stay tuned for all the LIVE updates of the market action on Union Budget day:
10. 24 AM: Global market potray mixed trend
Asian markets are trading higher today, as Chinese manufacturing activity in January came in at 51.5.
US markets closed lower on Friday even as weekly unemployment claims dipped below 9,00,000 while personal income rose more than expected in December.
European markets closed lower on Friday as the recent talks on huge retail buying in selected stocks has called for caution. Retail stocks gave up the most.
10. 15 AM: Nifty outlook
Geojit Financial said in its note,"Potential for a reversal or atleast a slow down, as indicated by the doji formed on Thursday, was thrown out of contention by the massive bearish engulfing pattern formed on Friday. The bullish candles seen on 15m candles formed on Friday towards the close could prompt a pull back, which could last till 13800, before resuming the plunge to 13500-13330. Alternatively, direct rise above 13800 would call for 14130."
10. 10 AM: Budget Expectations
The Modi government could consider addressing a few crucial issues that affect farmers across the country in the forthcoming Union budget. Experts say the government may consider announcing a loan waiver scheme to appease farmers across the country.
The Shopping Centres Association of India (SCAI) has sought financial waivers, a loan moratorium for the sector along with easing of income tax norms in the upcoming Union Budget.
The auto and real estate sectors, which are still struggling, have urged the government to give more tax breaks to citizens, leaving them with higher disposable incomes. The key demands of the real estate sector comprise tax rebate on housing, GST waiver, personal tax relief, extension of interest subvention, easing liquidity for the sector, and infrastructure status for realty.
The National Real Estate Development Council (NAREDCO) in its recommendations to the Finance Minister Nirmala Sitharaman has sought to remove the ban on subvention scheme for home loans. It noted that the ban is not in favour of home buyers as a large proportion of them do not have the capacity to pay both EMIs on their home loans as well as house rents.
10.03 AM: Market update
Besides Budget 2021-2022, macro data, ongoing corporate earnings season and global market performance would also impact stock market trading this week
9. 55 AM: Market to raly on Budget today
India's Finance Minister Nirmala Sitharaman is expected to unveil plans to boost economic growth at the world's second-most populous country when she presents the Federal budget on Monday.
Investors also await growth projections for the upcoming financial year from the annual economic survey which will be presented later in the day.
9. 52 AM: FII action last week
Foreign portfolio investors (FPIs) sold shares worth Rs 5,930.66 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 2,443.20 crore in the Indian equity market on 29 January, provisional data showed.
The weakness in the last five sessions was in line with foreign institutional investors (FII) turning into sellers in domestic securities since January 22. As per experts, the trend is to continue ahead of the budget.
FIIs have sold shares worth Rs 12,731 crore in last five trading sessions. FIIs offloaded shares worth Rs 5,930.66 crore on Friday and Rs 3,712.51 crore on net basis on Thursday, according to exchange data.
Sensex closes 588 points lower before Budget 2021: Five factors that led to correction
9. 48 AM: 30-60% drop in these stokcs in pre budget period
Stocks in S&P BSE 500 index that have fallen 10-30% in the pre budget period include stocks like Maruti Suzuki, GMR Infra, HDFC, DLF, M&M Financial, RBL Bank, Vakrangee, and Chennai Petroleum, among others.
9. 43 AM: Market update: volatility continues; top gainers and losers
Considering the fact that the market has seen six consecutive days of fall, market experts feel that the market thhat has continued volatility today could swing in either direction. IndusInd Bank, ICICI Bank, SBI, HDFC Bank added 1% to Nifty Bank index today.
HCL Tech, Dr Reddy, Tech Mahindra were among top losers.
9. 40 AM: A new national bank to finance infra projects?
FM may announce a national bank to finance infrastructure projects in the upcoming budget. The FinMin has reportedly prepared a draft of the bill called - the National Bank for Financing Infrastructure and Development Bill, 2020, which will have an authorised capital of one lakh crore rupees and twenty thousand crore rupees as an initial paid-up capital.
Budget 2021: Govt likely to announce new national bank to finance infra projects
9. 33 AM: Stocks to watch today on February 1
Titan, Airtel, ICICI Bank, SJVN, Tata Motors, Cipla among others are the top stocks to watch out for in Monday's trading session
Investors are also awaiting December earnings that are scheduled to be released today. Companies set to announce their earnings are Castrol, Coromandel International, Finolex Industries, Fortis Hospitals, Nerolac Paints, Mastek among others.
Stocks in news: Titan, Airtel, ICICI Bank, SJVN, Tata Motors, Cipla
9. 23 AM: Opening session: Market starts bullish ahead of budget
As predicted earlier, benchmark indices Sensex and Nifty opened on a bullish note on Monday, ahead of the announcement of Union Budget 2021. SGX Nifty on the Singapore Exchange recovered and traded higher by 30 points, indicating a positive start in domestic grounds today. BSE benchmark index S&P Sensex, traded 300 higher at 46,590 and NSE Nifty 50 index gained 65 points to 13,702.
9. 16 AM: Will govt increase LTCG exemption limit beyond Rs 1 lakh
From a stock markets' point of view, reforming the taxation burden on LTGC and removal of dividend distribution tax have been longstanding expectations of investors. These moves are likely to provide more liquidity in the form of disposable income.
Where some experts have stated that the government is unlikely to revoke or abolish taxes to keep up revenue flows, others are of the view that Finance Minister Nirmala Sitharaman's Budget for 2021-22 is likely to increase LTCG exemption limit beyond Rs 1 lakh.
Budget 2021: Will govt increase LTCG exemption limit beyond Rs 1 lakh
9. 10 AM: Rupee closing
In the foreign exchange market, the partially convertible rupee appreciated to 72.96 compared with its previous closing of 73.05.
9.09 AM: Q3 Earnings today
Castrol India, Coromandel International, Finolex Industries, Fortis Malar Hospitals, Kansai Nerolac Paints, Mastek, OnMobile Global, Rane Brake Lining, Reliance Capital, Reliance Infrastructure, Subex, Talbros Engineering, Triveni Turbine and Zydus Wellness are among the top companies that are scheduled to announce their quarterly earnings.
8. 57 AM: Market reaction on Budget 2020
Markets were nervous after the announcement of the scrapping of dividend distribution tax on companies and cutting taxes for individuals. Announcement of selling govt's stake in Life Insurance Corp. of India also sparked sharp decline in stocks of private insurers. The finance minister pegged the fiscal deficit target for the year 2020/21 at 3.5% of the GDP and revised the country's fiscal deficit target to 3.8% for the current fiscal year.
With no major boost for industry, budget 2020 failed to cheer the Dalal street as the market witnessed its biggest fall on February 1 since 2009. Sensex crashed 2.43% and closed right below 40K, as investors lost around Rs 3.6 lakh crore of wealth on BSE.
8. 44 AM: Market on Budget days
The domestic stock market has witnessed high volatility during most Union Budget announcements in the last 10 years.
Of the last 10 budgets, the stock market has closed lower six times. Twice the indices closed over 1% lower (2012, 2013). This excludes Budget 2020's 2.4% drop in Sensex, the worst budget-day plunge since 2009. On most occasions, benchmark indices Sensex and Nifty have mostly ended with a muted response after registering high volatility throughout the session.
Union Budget 2021: How Sensex, Nifty moved on Budget Day in last 10 years
8. 36 AM: Global market trend today
Amid worries that problems with vaccine rollouts combined with new strains of COVID-19, markets overseas closed in red last week. Asian markets, however, reversed trend and traded higher today.
U.S. stock indexes fell sharply on Friday after COVID-19 vaccine data from Johnson & Johnson hurt sentiment, while a standoff between Wall Street hedge funds and small, retail investors weighed.
In US, worries of a short squeeze grew after an army of retail investors returned to trade shares in GameStop Corp and Koss Corp. The stocks sky-rocketed after brokers including Robinhood eased some of the restrictions they had placed on trading. The U.S. Securities and Exchange Commission warned both brokerages and social media traders that it was closely monitoring potential wrongdoing.
8. 32 AM: Expectations on Budget day
Angel Broking in its note said," Post the Covid-19 pandemic there are expectations that the budget would contain measures to boost the economy. In the aftermath of the Covid-19 pandemic, the Government had undertaken targeted fiscal measures aimed at supporting the most critical sectors given the lack of fiscal space to provide support to the economy in the form of large cash spending. We expect the Union Budget 2021-22 to focus on boosting growth through a combination of higher spending along with targeted tax breaks, which will help boost consumption. We expect continued focus on critical sectors like Housing infrastructure and manufacturing along with continued thrust on boosting the rural economy."
Budget 2021 highlights: FM Nirmala Sitharaman unlikely to announce relief on income tax front
8. 27 AM: Economy Survey 2021-22
The Economic Survey 2020-21, tabled by Finance Minister Nirmala Sitharaman in the parliament on Friday, forecasted robust economic growth of 11% for the fiscal year beginning on 1 April 2021.
The document prepared by Chief Economic Adviser (CEA) KV Subramanian stated that the Indian economy is set to contract 7.7% in this fiscal year, the deepest contraction in four decades. The survey also predicted a V-shaped recovery in the next fiscal.
The Indian government may need to continue with an expansionary fiscal stance in order to sustain the recovery in aggregate demand, said the Economic Survey for 2020-21.
The survey, that failed to impress market, added that the soon-to-conclude financial year is likely to see a fiscal slippage and added that the expenditure support provided during the year will impart the required momentum to mid-term growth.
What is Economic Survey? All you need to know
8. 21 AM: Market last week
The Indian benchmark indices witnessed sharp correction last week and as per experts, the share market is expected to remain volatile in this eventful week. In the last week, the 30-share BSE benchmark tumbled 2,592.77 points or 5.30 per cent as investors resorted to profit-booking ahead of the Union Budget. Further this week, key economic data that will release that includes manufacturing PMI, services PMI and GST collections data for January.
On stock market reaction to Budget 2021, Vinod Nair, Head of Research at Geojit Financial Services, said, "In this waning domestic trend, Budget will be the key to provide strength and perform better compared to the rest of the world. Expectations are high that the government should maintain the populist and reformist agenda of maintaining the mass sentiments, deficit discipline and growth in difficult pandemic period."
Stock market this week: Union Budget, RBI policy, macro data to be in focus
8. 16 AM: Budget 2021 proceedings to begin at 11 am
Budget 2021 proceedings will begin at 11 am. Last year, Sitharaman had delivered the longest ever budget speech on February 1, 2020. She spoke for 2 hours and 41 minutes. The Union Budget 2021 may well be a "budget like never before", as Finance Minister Nirmala Sitharaman claimed during pre-budget consultations in December. When Sitharaman speaks in Parliament today, she'll have a twin task to deliver -- reviving the economy that was already shaking when Covid-19 hit the country in early 2020 and tackle challenges thrown by the pandemic swiftly.
8.08 AM: Sensex, Nifty may start higher today
Market is awaiting key reforms that could push growth and kickstart the capex cycle in the economy. SGX Nifty on the Singapore Exchange recovered and traded higher by 30 points, indicating a positive start in domestic grounds today.
In economic data, Markit Manufacturing PMI for January will be declared today, 1 February 2021. RBI's Monetary Policy Committee will come out with its last bi-monthly policy for the current financial year on Friday.
Union Budget 2021: Share market expectation on Budget Day; key factors that will guide D-Street
8:00 AM: Union Budget 2021-22 to dictate market trend
The share market is expected to remain volatile in this eventful week as the Union Budget. The Union Finance Minister Nirmala Sitharaman is set to present Union Budget 2021 on February 1, 2021. This would be the eighth Annual Budget under the ruling BJP government, where she will unveil plans to boost the economy battered by COVID-19 pandemic. Ahead of the presentation of the Budget, the Economic Survey 2021 was tabled in Parliament on January 29.
Budget 2021: Date, speech time, sector-wise expectations; everything you need to know