Markets may open negative, with sector specific action as the budget allocation sinks in

Indian benchmark indices started the session on a soft note and thereafter indices traded in a narrow range ahead of the budget. However, they staged a spectacular rally in the afternoon session on the back of broad based buying, as the Union Budget presented by the Finance Minister, Arun Jaitely was appreciated by the market participants as there was no long term capital gains tax imposed as most of the market experts had anticipated. Finally, the NSE’s 50-share broadly followed index, Nifty, surged by close to two per cent to settle above the crucial 8,700 support level; while Bombay Stock Exchange’s Sensitive Index-Sensex accumulated over four hundred points and closed above the psychological 28,100 mark. Moreover, the broader markets too participated in the rally and closed with gains of over one and half per cent.  

European markets bounced back from yesterday’s late pull back and remained in the positive territory for the majority part of the session. The DAX of Germany climbed 1.08 per cent and the CAC 40 of France rose 0.96 per cent. The FTSE 100 of the U.K. gained 0.12 per cent.

Asian stocks are trading lower on Thursday, where Japan’s Nikkei 225 is trading lower by 0.25 per cent at 19,099. Whereas, Hong Kong’s index Hang Seng is trading with cuts of 0.33 per cent.

At 8:11 am, SGX Nifty index has dropped 34 points to 8,704, indicating a negative start for Indian equities. Shares of Tata Motors and Mahindra and Mahindra will be in focus today. Tata Motors sales have declined 1 per cent; while Mahindra and Mahindra sales dropped 10 per cent in January.