Indices end higher, supported by banks, IT, FMCG, and pharma

With such a strong closing after the Budget event, the trend of Nifty seems to be on the positive side

Market update at 3.30 PM: It was a splendid recovery by the indices as Nifty rose from its day’s low by about 300 points. In the end, the benchmark index closed at 17,576, up by 1.37 per cent. Meanwhile, Sensex gained over 848 points. It was a broad-based recovery as Nifty Midcap and Nifty Smallcap firmly ended in green after falling halfway.  

The top sectors that supported the market were banks, IT, FMCG, and pharma whereas, the auto sector ended flat. The top gainers' list includes Tata Steel and Sun Pharma while BPCL & IOC slipped after the Budget.  

With such a strong closing after the Budget event, the trend of Nifty seems to be on the positive side, and we can very well expect the index to surge in the coming days.  

Market update at 1.15 PM: It was a spectacular growth-oriented Budget that focussed on many futuristics aspects such as digital currency, clean energy, defence, etc.   

The market is making huge moves in both ways. Nifty has lost all its gains and is trading flat. Nifty Midcap and Nifty Smallcap have been trading marginally negative. Lots of positions have been built-up as well as unwounded. Lack of clarity is seen in the last half an hour, which makes it difficult to understand the clear trend of the market.  

The top gainers in the first half of the session include Sun Pharma and Britannia while BPCL & IOC have slipped over 3 per cent each.   

Among the sectoral indices, Nifty Bank, Nifty Auto, Nifty Media, and Nifty Realty are trading lower while Nifty  IT, Nifty Pharma & Nifty FMCG are supporting the market.  

Market update at 10.20 AM: Indices have extended gains in the first hour of the trade. Nifty is currently trading around 17,600, up by 1.35 per cent while Sensex has gained over 800 points.  

All the sectoral indices are trading in green ahead of Union Budget. Prominently, banking and realty stocks have been supporting the market. The top gainers in the first hour include Britannia, Sun Pharma, and IndusInd Bank.  

With just a few minutes remaining for the commencement of Budget 2022, the market participants are gearing up to take up positions. Thus, volatility is a factor to watch out for! 

Pre-market update: With the Union Budget being presented today, it is going to be a significant day for the Indian Stock market. Nifty has shot up by over a per cent on the last trading day in anticipation of good budget. Moreover, good global cues are supportive to the market and in line with this, SGX Nifty is indicating an opening of around 17,500 for Nifty. 

On the last trading session, the FIIs have sold for about Rs 3,624 crore worth of equity while the DIIs bought an equivalent amount. 

Crude oil is trading marginally higher while natural gas is up by about a per cent. The precious metals have been trading mixed early in the morning. 

Rupee is stronger against all currencies on Tuesday morning.  

The Finance Minister is expected to start the Budget proceedings at 11 am. We can expect the market to be highly volatile throughout the day. Considering this, it is much important to review the trading size and other crucial factors that will dictate the market during the day.