Weekly Wrap: Modi’s Poll Budget Propels Sensex, Nifty To Best Weekly Gains Of 2019
Indian equity benchmarks clocked their best weekly gains of 2019 after the Narendra Modi government proposed fresh schemes in the budget ahead of the general election.
The S&P BSE Sensex Index rose 1.23 percent this week to end at 36,469.43. The NSE Nifty 50 Index closed at 10,893.65 after advancing 1.05 percent this week, led by Zee Entertainment Enterprises Ltd., HCL Technologies Ltd. and Axis Bank Ltd.
The 50-stock index is likely to remain in a range between 10,600-11,000, AK Prabhakar, head of research at IDBI Capital, told BloombergQuint over phone. “However, if 10,600 breaks on downside, there can be added selling pressure.”
“If Nifty has to move higher it has to cross 11,000. But corporate governance concerns might take an ugly turn as we have companies cropping up with governance issues. Many investors are stuck in those shares and in my view quality stocks will also face price erosion because of these issues,” Prabhakar said.
Six out of 11 sectoral gauges compiled by NSE advanced, led by NSE Nifty Media Index. On the flipside, the Nifty Metal Index was the top sectoral loser.
The NSE Nifty 500 Index resumed its weekly rally after a blip in the last week. The gauge advanced 0.7 percent this week, led by gains in Jubilant Foodworks Ltd. and Gateway Distriparks Ltd.
Rupee: Worst Asian Currency Performer
The rupee was the worst performing Asian currency this week. The local unit depreciated 0.11 percent to end the week at 71.25 against the U.S. dollar.
Budget 2019 At A Glance: Top Announcements
For an interim budget, there were a lot of schemes and policy changes announced.
Here are the top five announcements from his speech.
- Proposal to scrap income tax for those earning upto Rs 5 lakh.
- Proposal to launch a pension scheme for unorganised sector workers, setting aside Rs 500 crore for it in FY20.
- A proposal to transfer Rs 6,000 to accounts of small and marginal farmers per year. under the new "Kisan Samman Nidhi" scheme. Rs 75,000 crore has been budgeted for this in FY20.
- Fiscal deficit target for FY20 set at 3.4 percent, higher than the 3.3 percent target for the current fiscal.
- Divestment target set at Rs 80,000 crore for FY20, same as that set for the current fiscal.
Click here to read other top stories of Budget 2019
Nifty Earnings Announced This Week
Nifty Earnings To Watch Next Week
Data To Watch
- Jan. 05: Nikkei India Services PMI and Composite PMI
- Jan. 07: RBI Monetary Policy Meet