The Indian stock market will remain open on 1 February, Saturday - the day the Union Budget for fiscal 2020-21 is scheduled to be presented, according to a BSE notice. Trading will be conducted during normal hours of 9AM to 330PM.

Stocks markets are typically shut on Saturdays.

It was in 2015 last that the Union Budget was presented on a Saturday, and the markets had remained opened as former finance minister Arun Jaitley presented the document for the government’s statement of annual accounts.

The Union Budget for 2020-21 will primarily focus on boosting economic growth.

India’s economic growth decelerated to a six-and-a-half-year low of 4.5% in the September quarter. The government’s statistics office has estimated the economy to pick up in the second half of the financial year to register 5% overall growth in 2019-20. On Monday, the International Monetary Fund sharply revised downward India’s growth forecast by 130 basis points to 4.8% for 2019-20, which resulted in a subsequent downward revision in its world growth projection.

Markets will keenly eye FY21 budgetary assumptions, particularly revenues and nominal GDP growth. A comparison to ‘actual’ FY20 numbers (maintaining FYTD revenue run rate for 4QFY20) will be crucial to set off the FY21 math on a credible note.

Analyst said markets will also look for improved transparency in budgetary announcements. Any reduction in the fiscal deficit could result in a negative credit impulse in the near-term but will need to be balanced with a credible consolidation plan further out.

Close
×
My Reads Logout