Sensex jumps over 100 points ahead of Budget 2019, Nifty trades above 10,850; Hero MotoCorp, HCL Tech, Bharti Airtel shares gain

Mumbai: The BSE benchmark Sensex on Friday jumped over 100 points ahead of the Budget presentation by Finance Minister Piyush Goyal amid heavy buying by foreign portfolio investors.

The 30-share index was trading 119.01 points, or 0.33 percent, higher at 36,375.70.

Similarly, the 50-share NSE Nifty rose 34.15, or 0.32 percent, to 10,865.10.

On Thursday, the 30-share Sensex rallied 665.44 points, or 1.87 percent, to close at 36,256.69; and the broader Nifty soared 179.15 points, or 1.68 percent, to 10,830.95..

Top gainers in the Sensex pack include Hero MotoCorp, HCL Tech, Bharti Airtel, Bajaj Finance, Infosys, HDFC, HUL, M&M, L&T, ITC and Maruti, rising up to 2.91 percent.

Vedanta was the biggest loser on Sensex, cracking over 18 percent after the metals and mining giant Thursday reported a 25.54 percent decline in consolidated net profit at Rs 1,574 crore for the December 2018 quarter, on the back of higher expenses and drop in commodity prices.

Representational image. Reuters.

Representational image. Reuters.

Other losers include PowerGrid, ONGC, Axis Bank, Kotak Bank and Sun Pharma, shedding up to 1.14 percent.

According to Hemang Jani, Head - Advisory at Sharekhan by BNP Paribas, the government might look to boost the rural and agri sector ahead of the general election.

"Expect the government to go in for a populist Budget; however, market participants will closely weigh in the risk of a higher fiscal deficit and its impact on the market," he said.

It is classic macroeconomic theory to expect the government to come forward with fiscal stimulus during times of economic weakness, said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.

A looming election and aggressive opposition only adds to the pressure to deliver a meaningful relief package, he said; adding that, should the Budget disappoint, investors' attention is likely to revert to concerns centered around slowing growth and elections.

Meanwhile, on a net basis, foreign portfolio investors (FPIs) bought shares worth a net of Rs 3,006.41 crore Thursday, and domestic institutional investors (DIIs) were net sellers to the tune of Rs 1,634.32 crore, provisional data available with BSE showed.

Domestic market, however, will continue to be volatile ahead of the interim budget which will be announced on Friday, traders said.

Elsewhere in Asia, Shanghai Composite Index jumped 0.77 percent, Kospi gained 0.22 percent, and Japan's Nikkei was up 0.24 percent; while, Hong Kong's Hang Seng slipped 0.21 percent in early trade.

On Wall Street, Dow Jones Industrial Average marginally lower at 24,999.67 on Thursday.

The rupee, meanwhile, was depreciated by 8 paise against US dollar to 71.16.

The benchmark Brent crude futures were flat at $60.86 per barrel.

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Updated Date: Feb 01, 2019 10:03:09 IST

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