Domestic stock markets are set to start the week on a lower note today tracking weakness in global peers, as indicated by the Nifty futures traded on Singapore Exchange. The SGX Nifty futures were last seen trading 63.00 points - or 0.53 per cent - lower at 11,754.50. Equities in other Asian markets were broadly weaker tracking Wall Street which fell from record highs last week. The S&P BSE Sensex had shed 394.67 points - or 0.99 per cent - last Friday, and the NSE Nifty declined 1.14 per cent, after the presentation of Union Budget for 2019-20 in Parliament by the government.
The government's annual budget statement on Friday included measures aimed at improving the investment climate but lacked any direct steps to stimulate a sagging economy, adding to pressure on the Reserve Bank of India (RBI) to provide more immediate help.
With Budget presentation now behind, the focus will shift to macroeconomic data due this week for market cues, according to analysts.
"The market was hoping for supportive actions from the government which was not provided in the budget," said Vinod Nair, head of research at Geojit Financial Services. "This was undoubtedly due to the bleak fiscal position given the slowdown in domestic and global market."
The government stuck to the borrowing target announced in an interim budget in February and cut the fiscal deficit goal to 3.3 per cent of gross domestic product for the current year ending March 31, 2020, from an earlier, upwardly revised target of 3.4 per cent. Some forecasters had expected a deficit target as high as 3.7 per cent.
The Budget proposed raising the current threshold of 25 per cent minimum public shareholding in the listed companies to 35 per cent.
Meanwhile, MSCI's broadest index of Asia-Pacific shares outside Japan lost more than 1 per cent on Monday, with every market in the red. Japan's Nikkei faltered 0.9 per cent. Chinese shares started lower with the blue-chip index off 1.7 per cent and Hong Kong's Hang Seng index down 1.5 per cent. South Korea's KOSPI was off 1.8 per cent and Australian shares slipped about 1 per cent to a five-week low.
Strong US jobs data tempered expectations for a rate cut by the Federal Reserve while share sentiment was also dampened by US investment bank Morgan Stanley's decision to reduce its exposure to global equities due to misgivings about the ability of policy easing to offset weaker economic data.
(With inputs from agencies)
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