Budget today: Focus on deficit or welfare?

Finance Minister Nirmala Sitharaman will unveil the Budget today at 11 AM, a pivotal event for the market. Anticipating market positivity, experts forecast increased trading vigor and profitability. Government projections on revenue expectations will also influence market sentiment.

The market response will hinge on whether the budget prioritises reducing the deficit or boosting welfare initiatives, to be outlined in the initial early in the budget speech. The derivatives market saw a trading volume of 24,543 contracts last week, with today's opening at 24,560. Indian markets are expected to start trading positively.

Global markets

European markets saw gains last week, buoyed by shifts in US political dynamics. This trend continued with a rise of 0.32% in the Dow, 1.08% in S&P, and 1.58% in Nasdaq. US futures also performed positively, with Dow up 0.08%, S&P up 0.15%, and Nasdaq up 0.26%.

Asian markets started the week with trading activities, witnessing increases in indices in Australia and South Korea. In contrast, Indian markets ended last week with minor losses.

Indian markets

The Sensex closed at 80,900, down from its peak at 80,100, while the Nifty fell from 24,595 to 24,362. Metal, auto, health, and pharmaceutical sectors suffered significant declines.

Today's trading session saw a recovery in indices, with Sensex up 102.57 points (0.13%) to close at 80,502.08, and Nifty up 21.65 points (0.09%) to close at 24,509.25. Bank Nifty rose marginally by 14.80 points (0.03%) to close at 52,280.40. Mid-cap and small-cap indices also registered gains of 1.28% and 0.90%, respectively.

Foreign investors continued their buying spree this week, with cash markets seeing acquisitions totaling ₹3,444.06 crore and mutual funds/institutions adding ₹1,652.34 crore worth of equities.

Gold prices in Kerala

Investors await further market movements post-budget announcements. Gold prices remained stable with an ounce priced at $2,403. Silver traded at ₹54,160 per kilogram in Kerala.

Currency markets witnessed a rise in cryptocurrencies, with Bitcoin reaching $67,700 and Ether climbing to $3,450.

Market indices as of July 22, 2024:

Sensex 30: 80,502.08 (-0.13%)
Nifty 50: 24,509.25 (-0.09%)
Bank Nifty: 52,280.40 (+0.03%)
Mid Cap 100: 56,624.65 (+1.28%)
Small Cap 100: 18,563.05 (+0.90%)
Dow Jones 30: 40,415.40 (+0.32%)
S&P 500: 5,564.41 (+1.08%)
Nasdaq: 18,007.60 (+1.58%)
Dollar ($) exchange rate: ₹83.66 (No change)
Dollar Index: 104.31 (+0.03)
Gold (per ounce): $2,397.60 (-$1.40)
Gold (per 10 grams): ₹54,160 (-₹80)
Brent Crude Oil: $82.40 (-$0.23)