FM reaches Parl, investors wait anxiously, will he or won't he

Finance Minister Arun Jaitley will present Union Budget 2016-17 today. Indian markets will take cues from the budget, it will focus on credibility of numbers and can see wild swings depending on the announcements. The budget is expected to increase public investment, facilitate ease of doing business, check the huge subsidy burden and also focus on addressing distress in the agriculture sectors.

With global cues dominating market trends and the Sensex posting its worst returns in several years during the pre-budget week, things aren't looking rosy. Investors will be keen to know if the government deviates from the fiscal consolidation roadmap in order to boost growth. The other big fear the market has is the possible extension of the long term capital gains tax tenure, from 1 to 3 years or the possibility of reintroduction of a tax itself.

This month, Indian market is among worst performing big markets of the world. In dollar terms, India is worst performing market this month. The banking sector is looking up to the budget with great expectations.

Indian shares rose on Friday (the first day of March series), owing to the optimistic Economic Survey presented in the Parliament. The market snapped a three-day losing streak with the Sensex rising more than 250 points intraday. The 50-share NSE Nifty started off March series on a positive note after losing 6 percent each in previous two series (January and February), up 59.15 points or 0.85 percent to 7029.75. On Friday, the 30-share BSE Sensex climbed 178.30 points or 0.78 percent to 23154.30 while the broader markets underperformed  with the BSE Midcap rising 0.3 percent.