Stock Market spends day solving interim budget puzzle

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The Bank Nifty took the consolation from the fact that the government does not have an aggressive borrowing plan.

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By S Jha

New Delhi, February 1: The interim Budget passed off as a non-event for the equity market on Thursday. Finance Minister Nirmala Sitharaman presented the final budget of the second tenure of the Narendra Modi-led National Democratic Alliance (NDA) government.

The street had factored in the nature of the interim budget. Still, the street could not decipher the import of Sitharaman letting go the occasion to offer anything substantive to the street. The indices gave rousing receptions to the finance minister rising to present the interim budget by going on a gaining spree.

But the tone of the minister soon gave impression that she was merely listing out the achievements of the Central government in the last 10 years. Sitharaman stressed on the social justice theme of the Budget to argue a case of an all inclusive government.

With nothing coming out from her proposals, the Nifty dived into the red. The Bank Nifty took the consolation from the fact that the government does not have an aggressive borrowing plan. This brought the cheers for the banks as the likes of the SBI and Axis Bank in the company of HDFC Bank marginally gained to help the index post a modest gain on the street.

Unlike the past occasions when the budget days sent the indices trending, Nifty and Sensex remained subdued. The rail stocks came under pressure as Sitharaman could not live up to the expectations of rolling out an ambitious roadmap for the modernization of the rail networks.

Her announcement that the general coaches would be converted into Vande Bharat has already been factored in by the street due to the policy directions of the Ministry of Railways. The likes of Rail Vikas Nigam, IRCON, IRFC, Titagarh Wagons, and other shed marginally in the absence of any bullish cues from the interim budget.

Sitharaman reiterated the rooftop solar scheme unveiled by Modi a fortnight ago. This assured the investors to stay invested with the solar companies. The likes of Waaree Renewable, KPI Green, Suzlon, IREDA, and others remained firm on the street.

Sitharaman’s pep talk on India Middle East and Europe Economic Corridor brought cheers for the Shipping Corporation of India. Also, the minister’s stress on tourism helped the Tourism Finance to gain on a dull day. Among the PSUs, BEML was the big gainer. Maruti was trending while reacting on healthy numbers posted by the auto maker in the quarterly result.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)

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