Friday February 28, 2020
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Fate of Indian equity market in the hands of upcoming Budget Session

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Mumbai: The upcoming week in the Indian equity market will witness Parliamentary proceedings, US macro-economic data and trends in crude oil prices, leading the fate of markets’ next moves.

Even the budgetary announcements, rupee’s trajectory and the interest of foreign investors will give vital cues to where the market is heading.

“Markets would continue to be lacklustre and news driven. Forthcoming budget expectations and corporate earnings would be watched closely,” predicted Devendra Nevgi, chief executive of ZyFin Advisors.

Pankaj Sharma, head of equities for Equirus Securities, elaborated that investors will be guided and influenced by developments surrounding the union budget.

“The market would read the important cues on the budget from key decision makers, both politicians and senior bureaucrats and react accordingly,” Sharma noted.

“One good thing in all this market mayhem over last 6-7 weeks which has been led by global factors is that the usual buzz on the budget has largely been missing.”

Vaibhav Agarwal, vice president and research head at Angel Broking, pointed out that investors have not priced in the possibility of key reforms being passed in the parliament session.

“Any progress towards implementation of important reforms such as the GST (goods and services tax) would be a key trigger for the markets,” Agarwal told reporters.

Market participants expect the central government to increase expenditure, announce tax concessions and pave the way to reduce the NPAs levels of the banking sector.

“Sentiments are currently down and any positive announcement is surely going to trigger a relief rally in the equity markets. This rally might spill over to the currency markets,” Anindya Banerjee, associate vice president for currency derivatives with Kotak Securities, told reporters.

According to Banerjee, normal parliamentary proceedings, after the recent political turmoil will be keenly followed by market participants. The parliament’s budget session will commence on Tuesday.

“Any signs of a washout in the initial few days will dampen sentiments and dent the rupee,” Banerjee stated.

He explained that an “over-valued rupee” will come under pressure from February 22 onwards as a string of US economic data released till date is expected to keep the dollar well supported.

The rupee had crashed to an all time low at 68.89 to the dollar in the oversees currency markets on Friday and ended the day’s trade at 68.72.

Domestically, the rupee had closed unchanged from its previous close of 68.47 to a greenback on Thursday. The domestic currency markets were closed on Friday.

Besides, the union budget economic survey and railway budget will dictate trend on the bellwether indices informed Gaurav Jain, the director of Hem Securities.

“Indices may seem to remain volatile with a positive bias ahead of the expiry of February series derivative contract, economic survey and reform measures announced in the upcoming railway budget in the week ahead,” Jain said.

In addition, global cues, such as crude oil prices and the trends in foreign funds inflows will be keenly observed.

“Markets will continue to react to global cues with US home sales and GDP data expected next week,” Agarwal added.

Analysts forecast the continuation of the relief rally at the Indian bellwether indices. Short-covering, value buying and positive global cues had swelled the equity markets, during the just-concluded weekly trade.

The barometer 30-scrip sensitive index (S&P Sensex) of the Bombay Stock Exchange (BSE) zoomed by 723.03 points or 3.14 percent to 23,709.15 points during the just concluded week.

Similarly, the wider 50-scrip Nifty of the National Stock Exchange (NSE) rose by 229.8 points or 3.29 percent to 7,210.75 points.

Global indices too rose with the Dow Jones Industrial Average closing the week with gains of 2.6 percent. London’s FTSE rose by 4.2 percent during the week under review. (Rohit Vaid, IANS)

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Twitter records Over 11 lakh Union Budget 2020 Related Tweets On its Platform

The Finance Ministry used Twitter Polls to solicit and incorporate people's opinions into this year's Budget

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Twitter
Through a live carousel, Twitter provided updates during the presentation of the Union Budget, allowing people to follow the dialogue between policy makers, influencers, journalists, opinion-makers, and the general public. Pixabay

As netizens took to Twitter to react to the Union Budget 2020-21 which was presented by Union Finance Minister Nirmala Sitharaman on February 1, the micro-blogging platform saw more than 11 lakh Budget-related tweets recorded between January 30 to February 3, 2020.

The hashtag #UnionBudget2020 was used by the Twitterati to react to the budget.

The Economic Survey released the day prior to the Budget also dominated conversations.

“We are delighted that with the help of our news partners, we were able to bring the Union Budget 2020 speech and analysis to Indians across the country, enabling their questions and comments to be an integral part of the conversation in real-time,” said Amrita Tripathi, News Partnerships, Twitter India.

“The magnitude of Twitter conversations around represent the voice of the citizens of India, who want to be updated, aware, and actively involved in discussing topics of national relevance,” she added.

The Finance Ministry used Twitter Polls to solicit and incorporate people’s opinions into this year’s Budget, and also facilitated a livestream of Finance Minister, Nirmala Sitharaman’s speech.

Twitter
As netizens took to Twitter to react to the Union Budget 2020-21 which was presented by Union Finance Minister Nirmala Sitharaman on February 1, the micro-blogging platform saw more than 11 lakh Budget-related tweets recorded between January 30 to February 3, 2020. Pixabay

Through a live carousel, Twitter provided updates during the presentation of the Union Budget, allowing people to follow the dialogue between policy makers, influencers, journalists, opinion-makers, and the general public.

ALSO READ: Micro Blogging Site Twitter Adds New “Bitcoin Emoji”, CEO Jack Dorsey Uses It in Bio

“Events such as these prove that when it comes to important moments in the world, Twitter continues to be India’s live connection to what’s happening,” Tripathi said. (IANS)