Finance Minister Nirmala Sitharaman to Present Union Budget on July 23
Finance Minister Nirmala Sitharaman will present her seventh consecutive Union Budget on July 23. Last week, the Indian stock markets closed nearly unchanged after a period of strong gains, buoyed by positive global cues and a promising start to the earnings season. However, profit-taking on Friday erased earlier advances, leaving the Nifty index at 24,530.90 after reaching a high of 24,854.80.
In the past week, sectoral stocks in FMCG and IT sectors maintained their upward momentum, while sectors like metal, energy, and media saw declines. Broader indices also slipped, experiencing losses between 2.2 percent and 2.9 percent.
Historically, the market has reacted enthusiastically to the budget. The highest jump was observed the day after the Union Budget announcement in 2021, when the Sensex rose by 1197.11 points. Other significant increases were seen in 2017, 2018, the interim budget in February 2019, June 2019, 2020, 2021, 2022, 2023, and 2024.
Meanwhile, foreign portfolio investors infused Rs 15,420 crore into the Indian equity market. The net investment by foreign portfolio investors surged to Rs 30,772 crore so far in July, indicating strong buying by foreign investors. Market experts suggest that foreign investors are investing in Indian markets amid a weakening dollar and bond yields.
In the coming week, investors’ sentiments will also be influenced by the April-June quarter results for fiscal 2024-25, foreign fund inflow, crude oil prices, global cues, and other data. Ajit Mishra, SVP, Research, Religare Broking Ltd, stated that market reactions will hinge on earnings reports from major players like Reliance Industries and HDFC Bank early in the week, before shifting focus to the Union Budget. Increased volatility is anticipated in subsequent sessions.
Doubts Revealed
Finance Minister -: The Finance Minister is a person in the government who is responsible for managing the country’s money, including taxes and spending.
Nirmala Sitharaman -: Nirmala Sitharaman is the current Finance Minister of India. She helps make decisions about how the government spends money and collects taxes.
Union Budget -: The Union Budget is a plan made by the government about how it will earn and spend money over the next year. It includes things like taxes and funding for different projects.
Indian stock markets -: The Indian stock markets are places where people can buy and sell shares of companies. The main stock markets in India are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
FMCG -: FMCG stands for Fast-Moving Consumer Goods. These are products that people buy often, like food, drinks, and toiletries.
IT sectors -: The IT sector includes companies that work with technology, like making software or providing internet services.
Foreign portfolio investors -: Foreign portfolio investors are people or companies from other countries who invest money in Indian stocks and bonds.
Weakening dollar -: A weakening dollar means that the value of the US dollar is going down compared to other currencies. This can make it cheaper for people from other countries to invest in India.
Bond yields -: Bond yields are the returns or interest that investors get from buying bonds. Bonds are like loans that investors give to companies or governments.
Earnings reports -: Earnings reports are documents that companies release to show how much money they made or lost over a certain period. These reports help investors decide if they want to buy or sell the company’s shares.
Reliance Industries -: Reliance Industries is one of the biggest companies in India. It works in many areas like energy, petrochemicals, textiles, and telecommunications.
HDFC Bank -: HDFC Bank is one of the largest banks in India. It provides various financial services like loans, savings accounts, and credit cards.
