Domestic stock markets opened flat on Sunday during a special Budget trading session, as Union Finance Minister Nirmala Sitharaman is set to present her ninth consecutive Union Budget at 11 a.m.
The Nifty 50 index opened at 25,333.75, gaining 13.10 points or 0.05 per cent, while the BSE Sensex opened at 82,445.97, up 176.19 points or 0.21 per cent.
This marks only the second instance in the history of Indian stock markets when trading is taking place on a weekend for a special Budget session. Previously, markets were opened on a weekend in 1999, when the Union Budget was presented on February 27, a Saturday.
Market expert Ajay Bagga said expectations from the Budget remain subdued. Speaking to ANI, he said that markets are entering the Budget with tempered expectations, as personal income tax cuts, corporate tax reductions, and consumption tax cuts through GST have already been announced earlier.
Bagga added that expectations are now centred on higher capital expenditure in defence and railways, a lower fiscal deficit, and a clearly articulated glide path towards reducing the debt-to-GDP ratio by 2031.
“An overall rise in capital expenditure, targeted schemes to boost AI, semiconductors and manufacturing, relief for tariff-impacted exporters such as textiles and intermediate goods, and a credible reduction in fiscal deficit and public debt levels, along with a vision for the next phase of growth towards a Viksit Bharat, are the key expectations,” he said.
In the broader market on the National Stock Exchange, the Nifty 100 slipped 0.03 per cent, the Nifty Midcap 100 opened marginally in the green, while the Nifty Smallcap 100 remained under pressure.
Among sectoral indices, Nifty Metal declined sharply by 3.37 per cent. Nifty IT, Media, PSU Bank, Oil and Gas, and Financial Services traded weak, while Auto, FMCG, Pharma, Realty, and Healthcare indices were trading in the green.
Metal stocks witnessed heavy selling pressure, with Vedanta shares plunging 17 per cent to Rs 629, while Hindustan Zinc fell over 20 per cent to Rs 566. The decline followed sharp selling pressure in gold and silver.
Bagga cautioned that despite Gift Nifty ending positive on Friday, the steep fall in metals could trigger liquidity-driven selling in Indian equities due to leveraged positions and margin calls. He noted that the impact of the Union Budget on markets has remained muted on Budget day over the past three years and stressed the need for cuts in securities transaction tax (STT), long-term capital gains (LTCG), and short-term capital gains (STCG) to improve market sentiment.
In the commodity market, gold witnessed sharp volatility, falling around 5.4 per cent on Saturday to Rs 1,69,470 per 10 grams for 24-carat gold. In international markets, gold prices declined by over 9 per cent to USD 4,887 per ounce.
Commenting on precious metals, Bagga said that gold and silver trades are not over for investors with the capacity to hold positions without leverage. He advised maintaining a 10–15 per cent allocation to gold and silver in portfolios.
Other Asian markets remained closed on Sunday, with Indian stock markets being the only ones open due to the special Budget trading session.
(ANI)
