Market rallied ahead of the Union Budget presentation with benchmark indices trading higher during the morning session on Tuesday, February 1.
Market opened on a positive note ahead of the Budget presentation as Finance Minister Nirmala Sitharaman is all set to unveil Budget 2022-23 at 11 am in Parliament. Market rallied in the first half, led by financials, metals and pharma stocks.
At 10.31 am, the BSE Sensex was trading at 58,864.88, up 850.71 points or 1.47 per cent. It recorded an intraday high of 58,929.52 and a low of 58,493.63. The Nifty 50 was trading at 17,581.35, up 241.50 points or 1.39 per cent. It recorded an intraday high of 17,596.10 and a low of 17,468.50.
Britannia, Sun Pharma, IndusInd Bank, Tata Steel and ICICI Bank were the top gainers on the Nifty 50 while IOC, BPCL, Tata Motors, ONGC and Dr Reddy’s were the top laggards.
On the sectoral front, Nifty Bank, Nifty Private Bank and Nifty Realty were each trading over 2 per cent higher. Nifty Metal and Nifty Financial Services were each up nearly 2 per cent. Nifty Pharma and Nifty Healthcare Index were up over 1 per cent each.
The broader market also gained with broader indices in the green. The Nifty Midcap 50 and the Nifty Smallcap 50 were up nearly 1 per cent each. The S&P BSE Midcap Index and the S&P BSE Smallcap Index were also trading nearly 1 per cent higher each.
The volatility index softened 1.02 per cent to 21.73.
Analysts expect a lot of dole-outs in the Budget in the form of tax concessions, especially to salaried class and other marginalised sections. Some even believe there’s an outside chance for a tax cut for corporates, too, given the buoyancy in tax collection.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “Economic Survey’s projection of 8–8.5 per cent GDP growth for FY23, on top of the 9.2 per cent growth in FY22, reflects good growth momentum in the economy, which needs to be sustained. The survey’s confident message that there is enough fiscal room for capex indicates that the government is likely to give further push to infra spending in the Budget. Since growth is not widespread, the Budget is likely to give more relief for the stressed MSME segment.”
“The smart rebound in global markets, led by the US, and budget expectations have fuelled a late pre-Budget rally,” added Vijayakumar.