Stock market opens strong, anticipates increased capex and relaxation in taxes ahead of union budget announcement

Mumbai (Maharashtra) [India], July 23 : As anticipation builds for the Union Budget 2024 announcement, the stock market opened on a positive note on Tuesday.
The Sensex rose by 173.80 points, opening at 80,675.88, while the Nifty climbed 51.95 points, starting the day at 24,561.20. Out of the Nifty companies, 40 showed advances, while 9 registered declines.
Among the Nifty companies, Ultratech Cement, HDFC Life, Eicher Motors, Bajaj Finserv, and Grasim emerged as the top gainers. On the flip side, ONGC, HDFC Bank, Power Grid, Hindalco, and Bajaj Auto were the major losers.
Ajay Bagga, market and banking expert, advised caution in the Indian markets until the Union Budget 2024 announcement is made later today in Parliament by the Finance Minister.
Bagga said, "We advise caution in the Indian markets till the Union Budget 2024 announcement is made today in Parliament by the Finance Minister . The contours of the Budget should remain on expected lines, with a continued focus on balancing growth impulses with welfare measures.
He elaborated, "The Union Budget will describe the vision for the next 5 years and for the centennial of the modern Indian Republic in 2047. Any tax changes will be watched carefully for their impact on consumption. Markets will watch the sector-wise impact of the Budget measures, especially in infrastructure creation."
Market participants are keenly watching for any tax changes, which will be crucial for their impact on consumption.
Bagga highlighted that markets will scrutinize the sector-wise impact of the Budget measures, especially in infrastructure creation.
"Any adverse changes to taxation of the F&O segment or on capital gains in stock market investment could lead to a market sell-off, though we don't expect that," he added.
Bagga, said, "US markets staged a strong recovery lead by the Big Tech stocks rebounding after last week's lackluster performance. The markets digested Joe Biden's dropping out of the US Presidential election race and the emergence of VP Kamala Harris as the Democratic candidate."
He added, "Asian markets are also up this morning, following the US market's lead. We advise caution in the Indian markets till the Union Budget 2024 announcement is made today in Parliament by the Finance Minister . The contours of the Budget should remain on expected lines, with a continued focus on balancing growth impulses with welfare measures."
As the day progresses, all eyes will be on the Union Budget announcement, which is expected to set the tone for the market's direction and economic policy for the coming years.
Investors and analysts alike are eagerly awaiting the details that could shape the future of India's financial landscape.