New Delhi: Markets, in early trade on Friday, opened over 100 points higher compared to last day’s close. Nifty, on the other hand, opened 35 points higher. The Indian rupee also opened higher at Rs 71 per dollar. The rupee’s previous close was 71.08.
At present, the Sensex is running at 36,376.73 points, 0.33% up. Rupee consolidated in a range of 71 and 71.30 ahead of the important announcement of the interim budget.
“In the first half of the session, volatility could be confined to a narrow range but post the interim budget announcement, volatility could increase. But broadly we expect the USD-INR pair to quote in the range of 70.70 and 71.40,” said trading expert Motilal Oswal,
In today’s interim budget, market participants will keep an eye on whether the budget nudges the fiscal deficit target for the coming year.
If the fiscal number is raised higher, the rupee could come under pressure in the later half of the session, it added.
The Union Budget, which is presented each year, is one of the most followed economic events in India, especially for stock market investors.
Finance minister Piyush Goyal will present the sixth and final Budget of the Narendra Modi government for this tenure.
The BSE Sensex has gained 0.52 percent this year so far.
So far, this government has presented five Union budgets since it took over in May 2014 and the Sensex has delivered negative returns on three such occasions, on the day of the budget.
When the BJP-led government presented the full budget for the year 2014-15 on July 10, 2014, the Sensex fell 72 points on the day of the budget.
On the last occasion when the finance minister presented the budget on February 1, 2018, the Sensex lost 58.35 points from the previous day’s close.
The highest gain in the Sensex on a budget day was seen during the Union budget 2015-16 presented on February 28, 2015, when the Sensex ended 517 points up from the previous day close.