Markets

Markets shrug off Budget blues

DIIs, including insurers, buy shares worth almost ₹1,300 crore

The first trading session after the Union Budget — which led to an intraday fall of almost 1,100 points on Saturday — saw the benchmarks close with marginal gains as buying in select index stocks lifted the indices, even as the broader market remained in the red. The 30-share Sensex gained 136.78 points, or 0.34%, to close at 39,872.31. The broader Nifty settled at 11,707.90, up 46.05 points or 0.39%.

The broader market breadth, however, was weak with more than 1,500 stocks losing ground against 945 gainers. Interestingly, stocks from consumer-focussed sectors, including fast moving consumer goods (FMCG) and automobiles, gained ground on expectations that the new tax regime could lead to more disposable income in the hands of the consumers.

Among the top gainers in the Sensex pack were stocks like Nestle India, Asian Paints, HUL, Bajaj Auto, Maruti Suzuki and M&M among others. ITC ended the day as the worst performers among the Sensex pack, shedding more than 5% as the Budget proposed a higher excise duty on cigarettes.

“The Indian markets witnessed a volatile session but ended on a positive note as the investors absorbed the Union Budget disappointment,” said Ajit Mishra, VP-research, Religare Broking.

“We believe in the absence of any major announcements in the Budget may weigh on the investor sentiments in the short-term and we may continue to witness volatility,” he added.

Incidentally, the marginal gains in the Indian market came amidst a global weakness led by the Chinese market wherein the benchmark lost nearly 8% as the coronavirus outbreak claimed 360 lives — more than the number of people who died from the SARS outbreak in 2003.

Japan’s Nikkei was down by over 1% while the benchmarks of South Korea, Taiwan, Indonesia, Malaysia and Philippines all ended in the red.

Back in India, foreign portfolio investors (FPIs) continued to remain net sellers at ₹1,200 crore on Monday. Domestic institutional investors, which include insurance companies, provided some support by buying shares worth nearly ₹1,300 crore.

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Printable version | Apr 4, 2020 9:46:51 PM | https://www.thehindu.com/business/markets/markets-shrug-off-budget-blues/article30728711.ece

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