All eyes on Nirmala Sitaraman; Biden withdrawal upsets global markets

Finance Minister Nirmala Sitaraman will unveil the complete Union Budget for the upcoming fiscal year 2024-25 tomorrow, garnering full attention from the market. Despite significant changes in US policies and corporate results, the Union Budget remains crucial. Expectations for the interim budget were already high, and additional revenues were anticipated. The question remains how will these extra revenues benefit all. The market will be happy if the increased revenues are utilised to reduce taxes and boost investments. 

However, granting more subsidies to popular programmes may not elicit a favorable response from markets. Cutting taxes could help improve the country's ratings.

Reliance's results may lead to market fluctuations. HDFC Bank's results were exceptional.

Global markets 

Asian markets experienced significant downturns early in the morning. However, US market futures surged. On Friday night, the derivative market closed at 24,416.50 points. Today, it stands at 24,400 points. The Indian market will likely begin trading in a significant downturn.

European markets declined this week, influenced by the Windows trouble. The US market saw a 1% fall this week due to the Windows issue, impacting various sectors.

Biden's withdrawal 

President Biden's shift in political strategy has opened the door to market changes. Kamala Harris's candidacy for President may influence the market until Trump's prospects become clearer. Thus, the US political scenario could alter market sentiment.

Dow Jones closes with losses

The Dow Jones Index closed at 40,287.50 points, down by 377.49 points (0.93%). S&P dropped by 39.59 points (0.71%), closing at 5505. The Nasdaq fell by 144.28 points (0.81%), ending at 17,726.90.

US futures are currently on the rise, with Dow up by 0.20%, S&P by 0.33%, and Nasdaq by 0.56%.

Asian markets began trading with losses today. Indexes in Australia, South Korea, and Japan dropped by one percent.

Indian markets 

The Indian markets suffered significant losses this week, with Sensex falling to 80,499 and Nifty to 24,508 points.

Metals, auto, realty, oil & gas, health, and pharmaceutical sectors dragged the market down.

Sensex and Nifty Close

Sensex closed at 80,604.65, down by 738.81 points (0.91%). Nifty ended at 24,530.90, down by 269.95 points (1.09%). Bank Nifty dropped by 0.67%, closing at 52,265.60.

Mid-cap and Small-cap Indices

Mid-cap index dropped by 2.11%, closing at 55,908.30, while the small-cap index fell by 2.29%, closing at 18,397.75.

Foreign investors

Foreign investors continued buying this week. They purchased shares worth Rs. 1,506.12 crore in the cash market, with mutual funds and institutions adding Rs. 461.56 crore in bids.

Summary 

The market ended this week with overall losses, influenced by budget expectations and investor concerns. Investors are now looking forward to moving cautiously today.

Gold saw fluctuations amidst changing political scenarios. It fell to $2,401.80 last week but rose to $2,412 today. Continued fluctuations are expected depending on the US national image.

Gold and silver in Kerala

Gold prices fell by Rs. 360 per tola, settling at Rs. 54,520 this week. On Saturday, it fell further to Rs. 54,240.

Silver prices per ounce are currently at $29.30. In Kerala, prices dropped to Rs. 96,000 per kilogram.

Dollar index

The dollar index rose this week and may continue to fluctuate in the future.