Indian Stock Market Opens With Minor Gains Amid Budget Blues

The Indian stock market rebounded slightly on Friday after two days of decline post the Union Budget 2024-25. Sensex opened 131.08 points higher at 80,170.88, while Nifty rose by 52.10 points to 24,458.20. Sector performance varied, with some indices opening in red while others showed gains.

The Indian stock market opened with minor gains on Friday, following two consecutive days of declines after the release of the Union Budget 2024-25. The BSE Sensex started the day at 80,170.88, a rise of 131.08 points or 0.16%, while the Nifty at the National Stock Exchange (NSE) climbed 52.10 points or 0.21% to 24,458.20.

Earlier, both indices experienced slight declines, marking the fifth consecutive session of losses. At the NSE, sectoral indices saw a mixed performance: the Bank, Financial Services, FMCG, and Private Banks opened in the red, while the Auto, Financial Services, Nifty IT, Media, Pharma, Metal, PSU Bank, Realty, Healthcare, Consumer Durables, Oil and Gas sectors opened in the green.

Shriram Finance, LTIMindtree, Bharti Airtel, Infosys, and Hindalco emerged as the major gainers in early trading. Conversely, Tech Mahindra, HDFC Bank, ONGC, Maruti, and Nestle India were the top losers. Weaker results from Reliance Industries, Wipro, Bajaj Finance, Axis Bank, and Nestle have negatively impacted investor sentiment throughout the week.

'The Union Budget has been digested by the markets. Despite disappointment over personal tax and capital gains adjustments, the Budget addresses key priorities,' said Ajay Bagga, a banking and market expert. He noted that weaker-than-expected results from major corporations and recent tax hikes on capital gains in equity investments and derivatives trading have weighed on the markets.

Technically, Nifty 50 displayed resilience despite global market weaknesses, forming a bullish counterattack pattern on its daily chart and finding significant support near its 20-day Exponential Moving Average (EMA). This suggests potential for a near-term rebound. 'Looking ahead, the short-term outlook for Nifty remains sideways, expected to trade within the range of 24,200 to 24,600. A breakout beyond these levels could signal a shift in momentum, whereas breaches below 24,100 might lead to deeper corrections,' said Varun Aggarwal, MD, Profit Idea.

Globally, Asian equities had mixed results today. Japan's Nikkei 225 and Topix saw slight declines, contrasting with gains in South Korea's Kospi and Kosdaq. Hong Kong's Hang Seng index futures indicated a weaker opening. On Wall Street, US stocks closed mixed; the Dow Jones gained 81.20 points to 39,935.07, while the S&P 500 fell by 27.91 points to 5,399.22 and the Nasdaq Composite dropped 160.69 points to 17,181.72.