The Union Budget of FY27 struck a balancing act of maintaining capex growth at 12% despite revenue pressures, with a surge in short-term borrowings the only negative. The Nifty corrected 2% on Budget Day and analysts say they now see limited downside (1-2%) from current levels.

“A reversal of the recent correction, however, is heavily dependent on the arrest of the weakness in the rupee. The recent gold price crash, to that extent, is good news as would be an early conclusion of the India-US trade deal,” said Emkay Global.

STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a positive start
GIFT Nifty on the NSE IX traded higher by 90.50 points, or 0.37 per cent, at 24,876.50, signaling that Dalal Street was headed for a positive start on Monday.

• Tech View: Technically, Nifty is now consolidating below its earlier breakdown area, indicating a clear sell-on-rallies structure in the near term. As long as the index remains below the 25,200–25,300 resistance band, the bias stays cautious to bearish. Only a sustained move back above 25,300 would neutralise the negative undertone and signal short-term stabilisation.
• India VIX: India VIX, which is a measure of the fear in the markets, rose 13% to settle at 15.10 levels.

Asian shares fall
Asian stocks dropped and precious metals deepened their losses on Monday, underscoring the fragile sentiment in markets after a choppy end to the week on Wall Street. The yen weakened.

• S&P 500 futures fell 0.3% as of 9:04 a.m. Tokyo time
• Hang Seng futures fell 0.6%
• Japan’s Topix rose 0.6%
• Australia’s S&P/ASX 200 fell 0.6%
• Euro Stoxx 50 futures rose 0.8%

Oil slips

Oil prices fell 3% on Monday as U.S. President Donald Trump said over the weekend Iran was “seriously talking” with Washington, signalling de-escalation with an OPEC member ‌after risks of ‌a military strike drove prices to multi-month highs.

Gold down
Gold extended falls on Monday, pressured by a firm dollar, as ‍investors gauged U.S. President Donald Trump’s Fed chair pick Kevin Warsh’s approach to interest ⁠rate cuts, while silver recovered from a more than three-week low hit on Friday.

Dollar firm
The dollar clung to its gains on Monday as investors weighed what a Federal Reserve under ⁠Kevin Warsh might look like, with his preference for a smaller balance sheet.

Stocks in F&O ban today

Sammaan Capital

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

FII/DII action
Foreign portfolio investors net sold shares worth Rs 588 crore on Friday. DIIs, meanwhile, were net sellers at Rs 683 crore.

Rupee
The rupee on Friday hit its record low of 92.02 before ending 6 paise higher at 91.93 against the US dollar amid a firm American currency and geopolitical uncertainties.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)