The stock markets opened on a positive note today, buoyed by gains in financials and public sector companies, as investors anticipate forthcoming policy announcements in the Budget. The NSE Nifty 50 climbed by 0.24% to 24,568.9, while the S&P BSE Sensex advanced by 0.28% to 80,724.3.
Leading the Gains Today
All 13 major sectors posted gains. Financials, state-owned lenders, and public sector companies saw increases ranging from 0.35% to 0.7%. Among the Sensex constituents, UltraTech Cement, Mahindra & Mahindra, ITC, Larsen & Toubro, and NTPC emerged as the top gainers. Conversely, HCL Tech, Power Grid, JSW Steel, and Tata Steel experienced declines. Despite the initial gains, both benchmark indices later encountered significant volatility and were trading flat.
What Are Investors Watching For?
V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, told news agency PTI that market participants will be keenly observing any changes in Long-Term Capital Gains (LTCG) tax. He noted, “Stock-specific reactions will depend on the Budget proposals for particular sectors.” Lavina Quadros and Koundinya Nimmagadda, equity analysts at Jefferies, shared their perspective with Reuters, stating, “This Budget will serve as a directional indicator on whether the Bharatiya Janata Party’s focus on capital expenditure will shift towards socialist schemes.”
Sector Performance
On the day, all major sectors reported gains. Financials, state-owned lenders, and public sector companies saw increases between 0.35% and 0.7%. The broader indices, which focus more on domestic markets, also saw their small- and mid-cap segments rise by approximately 0.5% each.
