Indian shares open higher ahead of Union Budget 2024
The Hindu
Indian shares rise ahead of Union Budget, with financials leading gains; analysts expect positive impact on consumer goods, real estate, autos.
Indian shares opened higher on July 23, led by financials and public sector companies, as investors brace for policy announcements in the Union Budget due at 11 a.m., which could have a huge bearing on the trajectory of markets.
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The NSE Nifty 50 rose 0.24% to 24,568.9, while the S&P BSE Sensex added 0.28% to 80,724.3, as of 9:15 a.m. IST.
The Nifty has hit multiple all-time highs through its roughly 13% rally this year, despite a near 6% slide on June 4 when Prime Minister Narendra Modi's party returned to power but by unexpectedly having to rely on allies. Still, the index has risen in each of the seven weeks since.
The Budget, the new government's first major policy announcement, is expected to focus on job creation and boosting consumption, which analysts expect will be positive for sectors such as consumer goods, real estate and autos. "This Budget is a directional indicator on if the Bharatiya Janata Party's capex focus sees a dilution in favour of socialist schemes," said Lavina Quadros and Koundinya Nimmagadda, equity analysts at Jefferies.
On the day, all the 13 major sectors logged gains. Financials, state-owned lenders and public sector companies gained between 0.35%-0.7%. The broader, more domestically focussed small- and mid-caps added about 0.5% each.