Weekly Wrap: Nirmala Sitharaman’s Maiden Budget Fails To Impress Investors 

Indian equity benchmarks pared their weekly gains as Finance Minister Nirmala Sitharaman's maiden budget failed to impress investors.

The S&P BSE Sensex ended 0.3 percent higher this week at 39,513.39 and the NSE Nifty 50 closed at 11,811.15, down 0.19 percent. The 31-share index had rallied 1.3 percent in the first four days the week and the 50-stock gauge returned 1.34 percent during the period.

“The investors were disappointed after the finance minister proposed to raise the minimum public shareholding limit to 35 percent,” said G Chokkalingam, founder and director at Equinomics Research & Advisory. “There are chances that the government might postpone the proposal after today's market reaction. The markets could rally if the centre decides to postpone the proposal. Else, it could remain around the current levels.”

Pritesh Mehta of YES Securities said during the Nifty's upmove, its daily Relative Strength Index remained beneath 60, suggesting lack of momentum on the upside. “Also, an appearance of a large bearish candle represents immediate hurdle near 12,000.”

How Broader Markets Performed

The broader market index represented by the NSE Nifty 500 Index, which gained 1.23 percent between Monday and Thursday, closed flat this week after the 500-share gauge erased weekly gains with just Friday's fall.

How Sectoral Gauges Performed

Six out of 11 sectoral gauges compiled by the National Stock Exchange ended higher this week, led by the NSE Nifty PSU Bank Index's 3.05 percent rally. The NSE Nifty Metal Index was the top sectoral loser, down 4.3 percent.

Rupee: The Best Asian Currency Performer

The Indian rupee extended gains for the third consecutive trading session against the U.S. dollar. The home currency appreciated 0.9 percent this week to close at 48.42 against the greenback. The local legal tender was also the best Asian currency performer.

The rupee clocked its longest gaining streak since March 2004 after appreciating for the tenth consecutive trading session on Friday.

Budget 2019 At A Glance: Top Announcements

Nirmala Sitharaman kept an aggressive revenue target, prioritised fiscal prudence and taxed the super-rich more in the first budget of Narendra Modi government's second term.

Here are the key takeaways from the 2019-20 budget presented by India's first full-time woman finance minister.

• India set to become $3 trillion economy this fiscal.
• Government pegs fiscal deficit for 2019-20 at 3.3 percent.
• Centre allocates Rs 70,000 crore for PSU bank recapitalisation
• Finance Minister introduces two new super-rich tax categories
• Lower 25% corporate tax rate extended to more companies.

Click here to read about the key takeaways from Union Budget. Read more Budget stories here.

Key Earnings To Watch Next Week

• July 9: Tata Consultancy Services
• July 12: Infosys

Key Data To Watch Next Week

• July 12: India CPI data for June
• July 12: India IIP data for May