Budget day: Market becomes highly volatile after companies open early

The benchmark stock index started trading on an upbeat note on Thursday but then faced sharp swings ahead of the medium-term budget. The 30-share BSE Sensex opened on a positive note, rising 248.4 points to 72,000.51 points in early trade. Nifty gained 62.65 points to reach 21,788.35 points.

Subsequently, both benchmark indices were choppy and fluctuated between highs and lows. Among Sensex companies, Mahindra & Mahindra, Maruti, Power Grid, NTPC, IndusInd Bank and Sun Pharma were the top gainers.

Larsen & Toubro, Titan, Bajaj Finserv and JSW Steel are the major laggards. Goods and services tax collections jumped 10.4% to over Rs 172 crore in January, reflecting brisk economic activity and laying the foundation for the next phase of the goods and services tax reforms.

In Asian markets, quotes in Seoul, Shanghai and Hong Kong were in the green, while quotes in Tokyo were lower. U.S. stocks closed sharply lower on Wednesday.

The Federal Reserve kept its key interest rate unchanged on Wednesday and made clear that it does not expect to cut rates appropriately until it is more confident that inflation will continue to move towards its 2% target. Wall Street took a beating overnight, with the Dow down 0.8%, the S&P 500 down 1.6% and the Nasdaq down 2.2% on disappointing Alphabet results. The Federal Reserve’s decision to keep interest rates steady further fueled the sell-off across the indexes. Investors now await Finance Minister Nirmala Sitharaman’s mid-term budget report in hopes of measures to boost economic growth and rein in the deficit. ” said Prashanth Tapse, Senior Vice President (Research), Mehta Equities Ltd.

On the positive side, GST collections hit a record high of Rs 172 crore in January, he added. Global oil benchmark Brent crude fell 1.40% to $81.71 a barrel.

Foreign institutional investors (FIIs) bought shares worth Rs 1,660.72 crore on Wednesday, according to exchange data. On Wednesday, the Sensex rose 612.21 points, or 0.86%, to close at 71,752.11 points. Nifty gained 203.60 points, or 0.95%, to 21,725.70 points.

(This story has not been edited by News18 staff and is published from associated news agency – PTI)