Axis Bank, L&T, HCL and TCS were among the top gainers on Nifty50 (Representational image)
The BSE benchmark index Sensex and NSE Nifty rose higher in morning trade, ahead of presentation of Budget 2018 by Finance Minister Arun Jaitley in Parliament at 11 am today. The Sensex rose over 250 points to touch an intraday high of 36,226.97. The NSE Nifty rose as much as 73 points to hit 11,100.70.Higher global markets have given a boost to Indian stocks. Asian markets are mostly higher, tracking gains on the Wall Street, after US Federal Reserve kept interest rates unchanged overnight. Budget 2018-19 would set the direction for Sensex and Nifty in the near term, say experts. The corporate India is also hoping for a tax cut in Budget 2018-19, though expectations are modest given the fiscal constraints. There are expectations that the government may also announce some income tax sops for the middle class.
10 Things To Know About Sensex, Nifty Trade Today:
- IT, capital goods, infra and realty stocks were leading the gains in morning trade.
- Among the Nifty50 stocks, L&T, TCS, Mahindra & Mahindra, Eicher Motors, IndusInd Bank and HCL Tech were among the top gainers, up between 1.4 per cent and 3.5 per cent.
- Gains were limited with some selling witnessed in metal and pharma stocks. Tata Steel, Dr Reddy's Laboratories, Vedanta and Aurobindo Pharma were among the top losers on the NSE benchmark index.
- What market participants would be closely watching in Budget 2018 is the fiscal deficit target for 2018-19.
- The market is expecting Finance Minister Arun Jaitley to peg fiscal deficit target in Budget 2018-19 at 3.2 per cent.
- A fiscal deficit wider than 3.2 per cent, say experts, could hit Sensex and Nifty and send bond yields higher.
- Another key thing to watch is long-term capital gains regime on stocks. There is a buzz that the government may tweak the tax regime but most experts say that finance minister Arun Jaitley may not tweak it given the strong momentum in markets.
- Currently, if an investor holds a stock for more than more than 12 months, it is considered to be a long-term investment and any long-term gains from transactions in such stocks are exempt from taxes.
- From Budget 2017 to Budget 2018, the Sensex is up around 30 per cent. The gains in broader markets have been much higher.
- The Budget would be the key trigger for the markets in the near term, say experts. The Nifty has immediate support at 10,975 and if it is breached, markets may see a correction, says Deepak Jasani, head of retail research at HDFC Securities.
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