Bharat stock indices experienced a marginal decline at the opening bell on Wednesday, extending losses from the previous session. The slight fall is primarily attributed to continued profit booking and the latest selling of shares by foreign portfolio investors.
At the time of reporting, the Sensex was at 70,874.21, down 265.69 points or 0.37 per cent, while the Nifty stood at 21,462.50 points, down 59.60 points or 0.28 per cent. Among the Nifty 50 companies, 32 advanced, while 18 declined in the morning trading session.
Investors are gearing up for a busy week with Finance Minister Nirmala Sitharaman’s budget proposals and other macro-economic guidance. The Finance Minister is set to present the interim union budget on Thursday, which typically addresses the fiscal needs until a new government is formed after the Lok Sabha polls.
Furthermore, the outcome of the US Federal Reserve’s first policy meeting of 2024, scheduled for Wednesday midnight IST, is also on investors’ radar. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “The Fed decision tonight and the interim Budget tomorrow will weigh on markets in the near-term.”
He added, “Global markets will be keenly watching the Fed comment on the timeline and quantum of rate cuts. The first rate cut is likely to come in June 2024.”
Investors are particularly focused on the interim budget for any proposals regarding taxation of investments related to the capital market. Additionally, attention is directed towards the fiscal deficit and its glide path, given its importance for market stability. Stock-specific movements are expected based on sectoral allocations in the budget.
Meanwhile, foreign portfolio investors have been actively selling Indian stocks, turning net sellers in January 2024 after accumulating stocks in November and December. Data from the National Securities Depository Limited (NSDL) revealed that FPIs sold Indian stocks worth Rs 23,929 crore in January, following the accumulation of stocks worth Rs 66,135 crore in December.
Ajit Mishra, SVP – Technical Research at Religare Broking, commented on the market situation, stating, “The recent price action shows indecisiveness among the participants despite the favorable global cues, and we feel the prevailing tone may continue. Meanwhile, traders should focus on stock selection and maintain positions on both sides.”
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