Stock market looks up to Union Budget for cues


New Delhi: All eyes will be on the biggest economic event of the year -- Union Budget 2016-17 -- on Monday, which will set the stage for the movement of domestic equity market in days to come, say experts.
"The key event for the markets scheduled early next week is Union Budget for 2016-17 on February 29. All eyes are set on the Budget, which can bring some shine back on the Dalal Street," said Rohit Gadia, Founder & CEO, CapitalVia Global Research Ltd.
"Market movement depends on the Union Budget, trend in global markets, investment by foreign investors, movement of the rupee against the dollar and crude oil prices."
Besides, shares of companies from the auto sector will remain in limelight amid announcement of sales data early next month.
Also, Purchasing Managers' Index (PMI) data for services and manufacturing sectors are due this week, which would have a bearing on trading.
"All eyes are glued to the Union Budget. Market participants would react strongly to the event on Monday as everybody is hoping for some concrete steps from the government to boost investor sentiment," said Vijay Singhania, Founder-Director, Trade Smart Online.
Meanwhile, the pre-Budget Economic Survey has projected growth rate of 7-7.75 per cent for 2016-17 with downside risks due to the weak global economic scenario.
"The upcoming Budget will reinforce the direction of the domestic market," said Vinod Nair, Head-Fundamental Research, Geojit BNP Paribas Financial Services Ltd.
"Budget 2016 comes at a time when global markets are in a turmoil, forex rates are volatile and crude oil is at its multi-year lows. So, we expect the current government to present a concrete road map for fiscal consolidation to keep the market nerves calm," said Achin Goel, Head Wealth Management & Financial Planning, Bonanza Portfolio Ltd.
There are also apprehensions in the market about capital gains tax.
On a weekly basis, the BSE Sensex has fallen 554.85 points, or 2.34 percent, to end at 23,154.30.

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