Ahead of Market: 10 things that will decide stock market action on Monday
Budget session on Saturday, as investors reacted to a smaller-than-expected increase in government capital expenditure and plans to stimulate consumption through personal tax cuts in the Union Budget 2025.
The benchmark BSE Sensex gained 5.39 points or 0.01% to close at 77,505.96, while the broader Nifty 50 index closed at 23,482.15, lower by 26.25 points or 0.11%.
Here's how analysts read the market pulse:
The market has responded to the Union budget with a mixed view, primarily due to the modest 10% YoY increase in capex for FY26, falling short of expectations, said Vinod Nair, Head of Research at Geojit Financial Services, adding the sectors like railways, defense, and infra are affected on which the market relies for the performance, dampening the sentiment.
“On the other hand, consumption-based sectors, which are expected to benefit the most, had a low effect on the broad market due to their modest market mix position. However, the market will begin to factor in the broader benefits to the economy and corporations over the course of the year due to a rapid increase in disposable income and boost in ease in business," Nair added.
US markets
US stocks closed lower on Friday as markets retreated following the White House announcement that President Donald Trump will impose tariffs—25% on Canadian and Mexican imports and 10% on Chinese goods—starting Saturday.
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