Indian Stock Market Set to Open Lower Following Budget 2024

Indian stock market benchmark indices, Sensex and Nifty 50, are expected to start the day on a low note as global cues point toward a decline. GIFT Nifty is trading around 24,410, suggesting a negative opening for the Nifty 50 index.

On Tuesday, after the Union Budget 2024 was presented in the Lok Sabha, the market closed slightly lower. The Sensex dropped 73.04 points, or 0.09%, finishing at 80,429.04, while the Nifty 50 finished down by 30.20 points, or 0.12%, settling at 24,479.05.

Analysts note that Nifty formed a small negative candle with a long lower shadow, indicating a potential bullish reversal pattern. Nagaraj Shetti from HDFC Securities mentions that Nifty has been sustaining above its 10- and 20-day moving averages for several weeks, highlighting some signs of recovery.

However, volatility remains high, with Shetti suggesting that a sustainable move above the 24,650-24,700 range could lead to further increases towards 24,850-24,900 levels. But, if Nifty drops below 24,400, it might signal a correction down to 24,200-24,000.

Meanwhile, the Bank Nifty index fell by 502.10 points, or 0.96%, closing at 51,778.30. Analysts predict it may continue trading weakly unless it regains momentum above 52,100. They point out that should it fall below 51,700, further selling pressure may set in.

As for today’s market, traders will be closely monitoring the corporate earnings reports from key companies like Axis Bank, Bajaj Finserv, and SBI Life, as well as manufacturing and services data from HSBC.

In the U.S. markets, major indices like the S&P 500 and NASDAQ ended slightly lower, reflecting mixed earnings, which could influence investor sentiment here in India.

Foreign Institutional Investors (FIIs) reported net sales of shares worth ₹2,975.31 crore on July 23, while Domestic Institutional Investors (DIIs) were net buyers, acquiring stocks worth ₹1,418.82 crore.

Today also marks the debut of two IPOs—Kataria Industries and Macobs Technologies—expected to see good interest, with Kataria anticipated to premiere with a significant premium.

As traders analyze the landscape post-budget, the market’s direction is likely to hinge on both domestic and international developments.