The Sensex climbed almost 600 points and the Nifty advanced 159 points in early trade on Tuesday, ahead of the presentation of the Union Budget 2022-23 in Parliament. The 30-share Sensex was up 603.39 points, or 1.04%, at 58,617.56, while the Nifty was up 159.25 points, or 0.92%, at 17,499.10.
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IndusInd Bank led the Sensex pack with a 2.45% increase, followed by ICICI Bank, HDFC twins, Sun Pharma, Infosys, Kotak Bank, and Bajaj Finserv. 28 of the 30 Sensex members were trading in the green. The laggards were ITC and PowerGrid.
On Tuesday, Finance Minister Nirmala Sitharaman will present the Union Budget 2022-23 to Parliament.
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The 30-share BSE index concluded the previous session 813.94 points, or 1.42% higher, at 58,014.17. Similarly, the NSE Nifty gained 237.90 points, or 1.39%, to close at 17,339.85.
According to the Economic Survey, India’s economy is predicted to grow by 8-8.5% in the fiscal year beginning April 1 and is well-positioned to tackle future difficulties as a result of broad immunization coverage, supply-side reforms, and regulatory relaxation.
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Meanwhile, the Indian economy contracted by 6.6% in 2020-21, compared to an earlier projection of 7.3% contraction, indicating that the coronavirus pandemic-affected economy did not perform as poorly as previously anticipated.
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According to official statistics issued on Monday, production of eight infrastructure sectors increased by 3.8% in December 2021, compared to a 0.4% decrease in the same month last year, owing to improved performance by coal, cement, and refinery products.
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The Indian government’s fiscal situation remained strong, with figures for the first nine months of the fiscal year indicating that barely half of the planned deficit had been met.
“For April-December FY22, the fiscal deficit stood at 50.4 per cent compared to 145.5 per cent last year. Stronger tax and non-tax receipts have helped the government stabilise its budget,” Deepak Jasani, Head of Retail Research at HDFC Securities, said.
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On Tuesday, Asian markets benefited from a tailwind from a technology-led comeback in the United States, which was fueled by dip buyers hoping that this year’s share meltdown is coming to an end. Several Asian markets, notably China and South Korea, are closed for the Lunar New Year vacation, he noted. In the overnight session, stock markets in the United States closed on a strong note.
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According to preliminary statistics, foreign institutional investors continued to be net sellers in the domestic capital market on Monday, withdrawing Rs 3,624.48 crore.
Meanwhile, Brent crude, the international oil benchmark, increased 1.31% to USD 91.21 per barrel.