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Ahead of Budget, Sensex opens 260 points higher at 46,549, Nifty above 13,700
Market volatility is expected to continue this week in the wake of Union Budget, macro data and Reserve Bank of India policy, analysts have said.
Indian markets opened in green on Monday ahead of Union finance minister Nirmala Sitharaman’s Budget 2021 presentation in Parliament at 11am. Sensex edged 263 points or 0.57% higher at 46,549.14 at 9:32 am while the broader Nifty was above 13,700 in early trade.
Market volatility is expected to continue this week in the wake of Union Budget, macro data and Reserve Bank of India policy, analysts have said. "Going ahead, markets may continue to remain highly volatile amidst the ongoing earnings season and the Union Budget 2021. Expectations from the Budget are running high," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd told news agency PTI.
Investors are keenly awaiting the Budget announcements after the Economic Survey 2022-21, table in Lok Sabha on Friday project that the economy will witness a growth of 11% in the next fiscal year after an estimated 7.7% contraction in the Gross Domestic Product (GDP) in the current financial year.
According to the survey, the "V-shaped recovery is supported by COVID vaccination drive."
Driving market sentiments would also be announcements of PMI data for the manufacturing and services sector this week. The RBI interest rate decision on Friday is another major event that would drive domestic market sentiments this week.
In the previous session on Friday, Sensex tanked 588.59 points to close at 46,285.77 while Nifty slipped 182.95 points to settle at 13,634.60.
Meanwhile on the global front, Asian stocks climbed Monday and US equity futures pared declines as some of the concerns over volatile retail trading receded and signs of an easing cash crunch in China aided sentiment. Silver futures surged.
(With agency inputs)
