Sensex Falls On Caution Ahead Of Budget 2017, Idea Cellular Surges 25%

The Sensex and Nifty ended Monday's session marginally lower as caution prevailed on the Dalal Street ahead of government's Budget session which will start tomorrow with the Economic Survey of India and Annual Budget presentation for financial year 2017-18 which will be presented by the Finance Minister Arun Jaitley on Wednesday. Analysts say that the Street would closely watch out on how the government plans its expenditure in the next financial year after government's shock move to ban high value currency notes in November which as per economists slowed down the pace of the fastest growing major economies of the world.

Meanwhile, other Asian shares markets also ended on a subdued note adding to the lacklustre trend in Indian share markets after President Donald Trump introduced immigration curbs that sparked criticism at home and abroad, adding to fears that his 'America First' policy may prove destabilising for the rest of the world.

Japan's Nikkei fell 0.54 per cent.

Back home, the Sensex traded in narrow band. The Sensex ended 33 points lower at 27,850 and Nifty declined 8 points to settle at 8,633.

IT shares witnessed selling pressure after President Donald Trump introduced immigration curbs. Banking, auto, power and realty stocks also faced the heat of selling pressure.

From the Nifty basket of shares, Idea Cellular was the top Nifty gainer, the stock surged 25 per cent to close at Rs 98 after Vodafone said on Monday it was in talks to merge its Indian operations with rival Idea Cellular in an all-share deal that could help the groups counter the fierce competition in the market.

Following this development, other telecom shares also came in demand. Bharti Airtel and Reliance Communications also rose 6 and 11 per cent each respectively.

Larsen & Toubro which on Saturday announced a 38.85 per cent jump in its consolidated net profit at Rs 972 crore for the December quarter was also among the gainers.

On the other hand, TCS, Kotak Mahindra Bank, IndusInd Bank, State Bank of India, Ambuja Cements, Bharti Infratel and Tata Steel were among the laggards.