Union Budget 2024: Markets close on flat note as Sensex, NSE dip

Thursday’s market close was flat as investors were unimpressed by the interim budget that Finance Minister Nirmal Sitharaman unveiled. The Sensex finished with a loss of 106.81 points, or 0.15%, at 71,645.30, while the Nifty 50 closed 28.25 points, or -0.13%, lower at 21,697.45. Thursday’s slight decline in European equities was caused by banker losses outpacing tech sector advances, and the U.S. Federal Reserve’s indications that an early interest rate decrease was unlikely also soured investor sentiment. STOXX 600, a pan-European index, decreased by 0.1%. Asian stock market index fell 0.4%. Following the announcement of losses connected to US commercial real estate, Aozora Bank Ltd. had a 21% decline in Tokyo, mirroring those faced by New York Community Bancorp in the US. US equities futures indicated a slight recovery following the S&P 500’s 1.6% decline on Wednesday, which was the biggest since September. . The BSE Sensex and the NSE Nifty saw gains of up to 20 percent last year, while the mid-cap and small-cap indices saw gains of 48 percent due to positive macroeconomic conditions, anticipation of interest rate reductions, and strong pre-election sentiments. Market participants anticipate that the government will keep funding infrastructure projects and draw money from the private sector, but analysts also believe that there will be more market volatility in the weeks leading up to the interim budget and the earnings season.