Markets Open Lower as Union Budget Fails to Boost Nifty and Sensex

Indian benchmark indices started the day on a downward note as the Union Budget was perceived as uneventful by market participants. The Sensex opened at 80,343.38, down by 85.43 points or 0.11 percent, while the Nifty 50 began at 24,445.00, losing 34 points or 0.14 percent. Similarly, the Bank Nifty opened lower at 51,657.70, a decrease of 120.60 points or 0.23 percent.

In the initial trading hours, stocks in sectors such as Banking, Auto, Financial Services, IT, Pharma, Private Banks, Realty, and Healthcare were in the red. Conversely, stocks from the FMCG, Media, Metal, PSU Bank, Consumer Durables, and Oil and Gas sectors also showed negative performance.

The stock market experienced notable volatility during the Union Budget announcements on Tuesday. Following the presentation of the Union Budget 2024, domestic indices closed slightly lower on the final trading day. During the trading hours, consumer durables, FMCG, and pharma sector stocks attracted buyers in response to the Finance Minister’s proposed incentives. The market movement was influenced by the focus on employment, skill development, and ongoing infrastructure investment.

On Tuesday, foreign investors became net sellers in the Indian market after almost a week, offloading stocks worth Rs 2,975.3 crore. In contrast, domestic investors were net buyers, purchasing stocks worth Rs 1,418 crore, according to National Stock Exchange (NSE) data.

Asian markets followed Wall Street’s downward trend, with Japan’s Nikkei 225 and South Korea’s Kospi both trading lower on Wednesday. Hong Kong’s Hang Seng index futures indicated a flat opening.

In the US, major indices closed slightly lower on Tuesday amid earnings reports from Alphabet and Tesla. The Dow Jones fell by 57.35 points (0.14 percent) to 40,358.09, the S&P 500 declined by 8.67 points (0.16 percent) to 5,555.74, and the Nasdaq Composite dropped by 10.22 points (0.06 percent) to 17,997.35. Tesla shares decreased by 2 percent in regular trading and an additional 8 percent in after-hours trading, while Alphabet’s shares saw a modest increase of 0.1 percent.