Markets get external shock ahead of Budget

Indian markets opened on a weak note on Tuesday as marketmen traded under pressure ahead of tomorrow's Union Budget. The IT stocks crashed while the IT index was the underperformer of the day due to fears about H1-B visa coming true.

BSE Sensex and Nifty indices declined 0.7 per cent and 0.83 per cent, respectively. At the closing bell, Nifty fell by 71 points to close at 8561 and BSE Sensex decreased 193 points to close at 27655. On the NSE, 11 shares closed in the green, while 39 shares ended the day in the red and one remained unchanged.

All sectoral indices closed in the red, except FMCG. IT index dropped 292 points. Oil & Gas and Healthcare indices declined more than 200 points. Auto index fell 197 points, while Bankex declined 82 points. However, FMCG remained flat. Mid-cap decreased 143 points and Small-cap too fell 134 points.

Most of the Asian markets were closed on Tuesday on account of Lunar holidays. Shanghai, Hang Seng, Taiwan’s TAIEX remain closed. KOSPI and Nikkei dropped 0.77 per cent and 1.69 per cent, respectively.

The European markets were trading in positive sentiment.

Derivative Analysis

Nifty Future closed on a weak note at 8585. Going ahead, 8631/8516 will be the immediate support levels.