Sensex, Nifty To Open On Weak Note As Investors Assess Budget Impact

(RTTNews) - Indian shares may open on a subdued note Wednesday after the 2024 budget introduced significant shifts in capital gains tax that could affect investment decisions.

India's fiscal deficit glide path set out for 2025-26 is reasonable, but a coalition government at the Centre may pose challenges to pass bigger reforms that the economy needs, an analyst at Moody's Ratings said.

Earnings will continue to remain in focus, with 67 companies including Axis Bank, Bajaj FinServ and Larsen & Toubro due to report their quarterly results today.

Bajaj Finance reported a 14 percent increase in its Q1 net profit, meeting estimates while HUL's quarterly profit saw a modest 2.7 percent growth.

Benchmark indexes Sensex and Nifty ended little changed on Tuesday, after having fallen sharply early in the day as Finance Minister Nirmala Sitharaman hiked the Securities Transaction Tax (STT) and long-term capital gains (LTCG) taxes in her Budget.

The rupee fell by 5 paise to close at a record low of 83.71 against the dollar.

Asian markets were modestly lower this morning after Tesla and Alphabet reported disappointing financial results.

The U.S. dollar plummeted against the yen on rate hike bets ahead of a Bank of Japan policy meeting next week.

Gold consolidated above $2,400 per ounce after snapping a four-day losing streak on Tuesday. Oil prices rose about half a percent in Asian trade after industry data showed a draw in U.S. inventories.

U.S. stocks struggled for direction before eventually ending modestly lower overnight as investors assessed mixed earnings reports and monitored the fast-changing presidential contest.

Coca-Cola and GE Aerospace posted impressive earnings, but General Motors reported weakness in its China business and UPS reported lower profits and revenues.

The Dow slid 0.1 percent, the tech-heavy Nasdaq Composite ended little changed and the S&P 500 eased 0.2 percent.

European stocks closed on a mixed note Tuesday as tech shares rallied, offsetting losses in the mining sector.

The pan European STOXX 600 inched up 0.1 percent. The German DAX climbed 0.8 percent, while France's CAC 40 gave up 0.3 percent and the U.K.'s FTSE 100 declined 0.4 percent.