Indian Stock Market Sees Minor Gains After Union Budget 2024-25 Announcement
The Indian stock market opened with minor gains on Friday after two days of losses following the Union Budget 2024-25 announcement. The BSE Sensex rose by 131.08 points to 80,170.88, and the NSE Nifty increased by 52.10 points to 24,458.20. Yesterday, both indices experienced slight declines, marking the fifth consecutive session of losses.
Sector Performance
Among the sectoral indices at NSE, the Bank, Financial Services, FMCG, and Private Banks opened in red territory while the Auto, Financial Services, Nifty IT, Media, Pharma, Metal, PSU Bank, Realty, Healthcare, Consumer Durables, Oil and Gas stocks opened in green.
Top Gainers and Losers
The major gainers in the starting hours of the trade are Shriram Finance, LTIMindtree, Bharti Airtel, Infosys, and Hindalco. On the other hand, the stocks of Tech Mahindra, HDFC Bank, ONGC, Maruti, and Nestle India remained the top losers in the initial hour trade.
Market Sentiment
The results of Reliance Industries, Wipro, Bajaj Finance, Axis Bank, and Nestle have negatively contributed to the sentiments of investors in the last week. Market expert Ajay Bagga noted, “The Union Budget has been digested by the markets. On balance, but for the disappointment on the personal tax, enhanced capital gains tweaks, if we compare the Budget to FY2024, it ticks all the key priorities.”
Technical Analysis
Technically, Nifty 50 showed resilience despite global weakness, forming a bullish counterattack pattern on its daily chart, with significant support found near its 20-day Exponential Moving Average (EMA). This suggests potential for an upward rebound in the near term, despite ongoing choppy conditions. Varun Aggarwal, MD of Profit Idea, said, “Looking ahead, the short-term outlook for Nifty remains sideways, expected to trade within the range of 24,200 to 24,600. A breakout beyond these levels could signal a shift in momentum, while breaches below 24,100 might trigger deeper corrections.”
Global Market Performance
In global markets, Asian equities showed mixed performance today. Japan’s Nikkei 225 and Topix slipped marginally, contrasting with gains in South Korea’s Kospi and Kosdaq. Hong Kong’s Hang Seng index futures hinted at a weaker opening. On Wall Street, US stocks closed mixed as key economic data and corporate earnings drove divergent movements. The Dow Jones gained 81.20 points to 39,935.07, while the S&P 500 declined by 27.91 points to 5,399.22, and the Nasdaq Composite fell by 160.69 points to 17,181.72.
Doubts Revealed
Union Budget -: The Union Budget is a financial plan presented by the Indian government every year. It shows how the government plans to spend money and collect taxes for the next year.
BSE Sensex -: BSE Sensex is a stock market index in India. It tracks the performance of 30 well-established companies listed on the Bombay Stock Exchange (BSE).
NSE Nifty -: NSE Nifty is another stock market index in India. It tracks the performance of 50 major companies listed on the National Stock Exchange (NSE).
Shriram Finance -: Shriram Finance is a company in India that provides financial services like loans and insurance.
Infosys -: Infosys is a big Indian company that provides technology and consulting services to businesses around the world.
Tech Mahindra -: Tech Mahindra is an Indian company that offers information technology and business process outsourcing services.
HDFC Bank -: HDFC Bank is one of the largest private banks in India. It offers various banking services like savings accounts, loans, and credit cards.
Ajay Bagga -: Ajay Bagga is a market expert who gives advice and opinions about the stock market and financial matters.
Personal tax changes -: Personal tax changes refer to adjustments in the amount of tax that individuals have to pay on their income. These changes are often announced in the Union Budget.
