Sensex, Nifty open higher ahead of Budget presentation

Mumbai

Sensex surged over 600 points and Nifty advanced 159 pointsin opening trade on Tuesday, ahead of the Union Budget 2022-23 presentation inParliament.

The 30-share Sensex was trading 603.39 points or 1.04 per cent higher at58,617.56, and the broader Nifty rose 159.25 points or 0.92 per cent to17,499.10. IndusInd Bank was the top gainer in the Sensex pack, rising 2.45 per cent,followed by ICICI Bank, HDFC twins, Sun Pharma, Infosys, Kotak Bank and BajajFinserv.

Read: Union Budget: First, longest, shortest and more...

Among the 30 Sensex constituents, 28 scrips were trading in the green. ITC andPowerGrid were the laggards. Finance Minister Nirmala Sitharaman will present the Union Budget 2022-23 inParliament on Tuesday.

In the previous session, the 30-share BSE index finished 813.94 points or 1.42per cent higher at 58,014.17. Similarly, the broader NSE Nifty rallied 237.90points or 1.39 per cent to end at 17,339.85.

On Monday, the Economic Survey said India's economy is expected to grow by8-8.5 per cent in the fiscal beginning April 1 and is well placed to meet thefuture challenges on the back of widespread vaccine coverage, supply-sidereforms and easing of regulations.

Meanwhile, the Indian economy contracted by 6.6 per cent in 2020-21 as againstthe earlier estimate of 7.3 per cent contraction, showing that the coronaviruspandemic-hit economy did not perform as badly as was initially thought.

According to the official data released on Monday, production of eightinfrastructure sectors expanded by 3.8 per cent in December 2021 against a 0.4per cent contraction in the same month last year on a better show by coal,cement and refinery products.

"The Indian government's fiscal position remains comfortable, with datafor the first nine months of the financial year showing that only half thebudgeted deficit had been exhausted.

"For April-December FY22, the fiscal deficit stood at 50.4 per centcompared to 145.5 per cent last year. Stronger tax and non-tax receipts havehelped the government stabilise its budget," Deepak Jasani, Head of RetailResearch at HDFC Securities, said.

On Tuesday, Asian stocks harnessed the tailwind from a technology-led rally inthe US that was spurred by dip buyers betting this year's equity rout is goingto ebb. Several Asian markets, including China and South Korea, are shut forthe Lunar New Year holiday, he added.

Stock exchanges in the US ended on a positive note in the overnight session. Meanwhile, international oil benchmark Brent crude rose 1.31 per cent to USD91.21 per barrel. Foreign institutional investors remained net sellers in the domestic capitalmarket, pulling out Rs 3,624.48 crore on Monday, as per provisional data.