High volatility in stocks is expected on Monday as Union Budget announcements will bring euphoria to some while disappointment to others. Investors have already been focussing on stocks by remaining optimistic about Budget announcements in some sectors.  

As the market eagerly awaits the contours of Budget; the banks, especially private banks are seen outperforming the markets. On the other hand, the IT & Pharma stocks are seen underperforming the markets during the first hour of the trade.  

The shares of IDBI Bank gained over 7 per cent on Monday, ahead of Union Budget 2021 announcements.  

Amber Enterprises: The ban on imports with refrigerant filled ACs has opened up new opportunities for the domestic manufacturers as well as for Amber. The company has already signed 6 new customers since the announcement. Amber Enterprises has bought land in the Supa region near Pune and the construction activity would start soon. 

Nifty has corrected 7.8 per cent from its all-time high of 14,753.55, which is its highest fall pointwise and the third biggest fall in percentage terms since March lows. A fall above 10 per cent is categorised as a correction. Now, with the last six days of fall, Nifty is giving many bearish signals. To begin with, Nifty has closed below the 50-DMA and at the same time, it closed below the 61.8 per cent retracement level of the recent upswing.

After an eventful 2020, Indian stock markets witnessed strong rallies towards the end of 2020, which seemed to continue at the beginning of January 2021 as well. On the contrary, January 2021 proved to be a volatile month for the Indian stock markets.  

The corporates and common man await favourable announcements with bated breath as Finance Minister Nirmala Sitharaman indicated this Budget to be like “never before”. What is more important for the market participant is to know historically which sectors performed well post the Budget announcements. To help the market participants know exactly which sectors performed well and which lagged behind, we have done an analysis of the last 10 Budgets, which includes Interim Budget as well. We have analysed one-month performance post the Budget announcement of key sectors and the broader indices (Nifty Mid-cap, Nifty Small-cap and Nifty 500) against NSE Nifty 50 Index.

On Friday, NSE announced that it has added five new stocks in the Futures and Options (F&O) segment.

As the month of January 2021 comes to an end, we observed that among all the sectoral indices, the auto sector has managed to lead by giving positive returns of around 8 per cent from January 1, 2021 to January 29, 2021.  

On Friday, the stock of Solara Active Pharma Sciences Limited zoomed 15.6 per cent, hitting its all-time level of Rs 1,542.05.  Later, it closed in green, up by 11.24 per cent at Rs 1,485.50 from its previous close of Rs 1,335.45. In less than a year, the stock has recovered by 320 per cent from its 52-week low of Rs 366.80. In the month of January 2021, the company has delivered a return of approximately 31 per cent.