Sensex trading in green ahead of Budget presentation
Mumbai, February 1, 2021
The BSE Sensex was trading in the green just before the presentation of the Union Budget on Monday.
The Sensex was up by 387 points at 46,673 points in morning trade as all eyes were on the crucial Budget to be presented by Finance Minister Nirmala Sitharaman.
Indusind Bank, ICICI Bank were the top gainers in the 30 share index. IT and pharma stocks are in the red while all other sectors in the indices are trading in the green.
However, trading is expected to be volatile during the day due to the impact of the Budget as well as withdrawals by FIIs.
V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services said markets are likely to turn highly volatile today responding to positive and negative Budget proposals.
Besides the budget, an area of concern is the huge FPI outflows which touched a high of Rs 5,930 crore last Friday. There is a huge outflow from other emerging markets too. Part of this is due to the issues in US market relating to the hit to hedge funds from the 'GameStock short squeeze', he added.
On the positive side, there are steadily improving news relating to the economy and corporate revenue & profits. IMF projects India's growth rate for 2021 & 2022 at 11.5 per cent and 6.8 per cent respectively making India the fastest-growing large economy in the world the two year period, he said.