Home / Markets / Stock Markets /  Indian stock market looking nervous ahead of Budget: Analyst

Indian stock market tumbled on the monthly derivative expiry day, dragged down by Adani group stocks and a selloff in banking stocks. The Sensex fell nearly 900 points at day's low while Bank Nifty index tanked over 2%.  Santosh Meena, Head of Research, Swastika Investmart Ltd, said Indian markets also look nervous ahead of presentation of Union Budget, due on February 1. 

“Indian markets experienced a sharp fall on January F&O expiry day. There is no trigger, but the market is looking nervous ahead of the Union budget," he said.

“The market is following last year's pattern because, in 2022, the Nifty saw a doji candle (which indicates a range-bound move) in the second and third weeks of January, followed by a sharp fall in the final week of January. However, that sell-off was a buying opportunity because then we saw a sharp post-budget rally," he added.

Technically, Santosh Meena said, Nifty is near the critical support level of 17800, and if it falls below this, then 17625 and 17425 are the next support levels. “On the upside, 18200 is a critical hurdle; above this, we can expect a rally toward 18500 and 18650 levels," he said. 

“Indian equities witnessed significant sell-off as the market appeared apprehensive ahead of the upcoming Union Budget and Fed meeting next week. Sentiments were dampened by persistent FII selling, where funds are being shifted to other EMs as a result of attractive valuations," said Vinod Nair, Head of Research at Geojit Financial Services.

Stocks of the seven listed Adani group companies fell sharply after Hindenburg, a well-known U.S. short-seller, said key listed companies in the group controlled by billionaire Gautam Adani had "substantial debt", which has put the entire group on a "precarious financial footing".

S Hariharan, Head Institutional Equity Sales, Emkay Global Financial Services, said: "The results season has seen a meaningful positive surprise factor from both IT, Banking as well as Auto sectors to the extent that earnings have been reported. We expect consumer discretionary names to stay under pressure due to weak demand in entry level categories and rising base metals prices would also act as a margin headwind going ahead. Foreign flows have been relatively weak, as relative valuation attraction in China has drawn incremental flows, but this phenomenon is expected to be overcome by strong growth numbers that Indian corporates continue to report."

Indian markets are shut today due to Republic Day. 




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