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Finance Minister Nirmala Sitharaman will present Union Budget 2020-21 in Parliament. The markets, otherwise, are closed on Saturday.
Sitharaman is set to outline fiscal steps that may include higher spending in rural areas and possible tax cuts when she delivers her second budget speech. The government is expected to widen its fiscal deficit target for the year through March to 3.8 percent of gross domestic product from a planned 3.3 percent.
Read to get up to speed:
Here are the five things to watch out for in Union Budget speech today. Catch all other Budget stories here.
Catch all the live updates on Union Budget 2020 here.
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Delhi: Finance Minister Nirmala Sitharaman arrives at Ministry of Finance; She will present her second Budget today pic.twitter.com/LGwGcumYk1
— ANI (@ANI) February 1, 2020
Indian indices are set to open lower ahead of Union Budget 2020.
The S&P BSE Sensex fell 0.57 percent to 40,956 during the pre-market after falling over 1,700 points and the NSE Nifty 50 traded little changed at 11,958.
Tata Motors to meet Ventura Securities on Feb. 4.
Indian indices opened lower ahead of Union Budget 2020.
The S&P BSE Sensex fell 0.44 percent to 40,549 and the NSE Nifty 50 fell 0.39 percent to 11,915. The broader markets represented by the NSE Nifty 500 Index fell 0.34 percent.
The market breadth was tilted in favour of sellers. About 729 stocks declined and 605 shares advanced on National Stock Exchange.
Nine out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty Private Bank Index’s 0.8 percent fall. On the flip side, the NSE Nifty FMCG Index was the top sectoral gainer, up 0.5 perecnt.
Shares of Escorts fluctuated between gains and losses to trade little changed after the company released its January sales data.
Key Sales Highlights (YoY)
Shares of Oil India fell for the third consecutive trading session. The stock fell as much as 2.7 percent to hit an all-time low at Rs 126.10.
The scrip declined 9.8 percent in the three trading sessions. The Relative Strength Index was below 30, indicating that the stock may be overbought.
Shares of Vinati Organics fell as much as 8.5 percent, the most since Oct. 1, 2018, to Rs 2,035.
That came after the company announced its December quarter results. The company’s net profit fell 39 percent on a yearly basis to Rs 66.82 crore in the three months ended December, according to its stock exchange filing.
Trading volume was more than eight times its 20-day average, Bloomberg data showed.
Castrol (Q4 CY 2019, YoY)
AIA Engineering (Q3, YoY)
Aditya Birla Capital (Q3, YoY)
Shoppers Stop (Q3, YoY)
Narayana Hrudayalaya (Q3, YoY)
Delhi: Finance Minister Nirmala Sitharaman and MoS Finance Anurag Thakur arrive at the Parliament, to attend Cabinet meeting at 10:15 am. #Budget2020 pic.twitter.com/GgY2Govlv1
— ANI (@ANI) February 1, 2020
Nifty’s 12,200 call option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract, which is set to expire on Feb. 6, fell 3.4 percent to Rs 63.40. About 4.79 lakh shares were added to the open interest which stood at over 25.44 lakh shares.
Shares of IRCTC extended gains for the seventh consecutive trading session. The stock rose as much as 10.1 percent to hit an all-time high at Rs 1,333.
Trading volume was almost six times its 20-day average, Bloomberg data showed. The stock returned 30 percent in the past five days and 39 percent in the past 30 days.
Maruti Suzuki (India) Ltd.'s total auto sales for January rose 1.6 percent year-on-year, according to a statement by the country's largest carmaker.
Here are the key highlights (YoY):
Shares of Maruti Suzuki rose 2.1 percent intraday to Rs 7060 each after the announcement.
Indian indices were steady after they pared opening losses as Finance Minister Nirmala Sitharaman begins Budget speech
The S&P BSE Sensex rose 0.34 percent to 40,867 and the NSE Nifty 50 rose 0.3 percent to 11,997. The broader markets represented by the NSE Nifty 500 Index rose 0.41 percent.
Finance Minister Nirmala Sitharaman rises to present Union Budget for 2020-21. She begins her speech saying the budget is aimed at boosting income and enhancing purchasing power. She said the budget aims to give aspiration and address the hopes of the citizens of the country.
Catch all the live updates on Union Budget 2020 here.
Finance Minister Nirmala Sitharaman lays out three prominent themes of this year’s budget:
Indian indices were holding a tight range as Finance Minister Nirmala Sitharaman presents Union Budget 2020-21.
The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 40,766 and 11,974 respectively. The 30-stock index had swung from a fall of as much as 0.7 percent to gain as much as 0.5 percent earlier.
The broader markets represented by the NSE Nifty 500 Index rose 0.2 percent.
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Indian indices declined as Finance Minister Nirmala Sitharaman presents Union Budget 2020-21.
The S&P BSE Sensex fell 0.54 percent to 40,521 and the NSE Nifty 50 fell 0.45 percent to 11,910. The broader markets represented by the NSE Nifty 500 Index fell 0.3 percent.
Indian stocks decline to trade at day’s low.
The S&P BSE Sensex fell 1.1 percent to 40,268 and the NSE Nifty 50 fell 1.13 percent to 11,830. The broader markets represented by the NSE Nifty 500 Index fell 1.02 percent.
Budget 2020: Government Abolishes Dividend Distribution Tax
The government plans to increase the investment limit of foreign portfolio investors (FPI) in corporate bonds from 9 percent to 15 percent, Sitharaman said.
The finance minister said certain government securities will be open for foreign investors.
She also proposed debt-exchange traded funds comprising mainly government securities, while stating that Rs 22,000 crore has already provided as support to infrastructure project pipeline.
“To address liquidity constraints of NBFCs and housing finance corporations, a partial credit guarantee scheme will be launched by the government,” she added.
Indian indices recovered from day’s low.
The S&P BSE Sensex fell nearly 400 points or 0.95 percent to 40,336 after falling as much as 700 points earlier. The NSE Nifty 50 fell 1 percent to 11,831.
The non-banking finance companies do not seem to see any relief amid the sector which is challenged at the moment, Saurabh Mukherjea, founder at Marcellus Investment Managers said.
“The request to Reserve Bank of India to extend the MSME restructuring window was a little worrisome. This is basically saying the government does not have the money to recapitalise the state-owned banks and therefore is asking RBI to kick the can down the road,” Mukherjea told BloombergQuint in an interaction.
The markets were hoping for something which announces relief for either real estate or NBFCs—allowing them to start taking part in the growth cycle all over again, according to Ananth Narayan, professor at S. P. Jain Institute of Management and Research.
“Lack of fiscal space for either growth or investment stimulus and the fact that the financial services sector, which is so critical to see the investment cycle come back again, seems to be still left out,” Narayan told BloombergQuint in an interaction.
The LIC listing and ambitious disinvestment target are linked. The FMCG stocks are roaring as the middle class is getting roughly Rs 10,000 in tax cuts. Also, the FIIs will come back to buy the high-dividend paying stocks as they benefit immediately.Saurabh Mukherjea, Co-Founder, Marcellus Investment Managers
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