Last updated: January 31, 2023, 9:31 AM IST
There could be significant volatility during Tuesday’s session as investors monitor parliamentary developments. Parliament’s budget session begins today with the 2022-23 economic survey as tables. The Union’s budget for 2023-2024 will be presented on 1 February.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Tomorrow’s budget and the Fed’s interest rate decision tomorrow night will have a major impact on the markets. On the positive side, going to the budget, instead of the usual pre-fiscal rally on expectations, this time we had a market correction. So if there are no negative surprises in the budget and the Fed’s commentary isn’t hawkish, there could be a market post-budget rally.”
“There has been overreaction in banking stocks, with Bank Nifty making a sharp correction of 6.2% in the past 3 sessions. High quality bank stocks offer a good buying opportunity. Signals from the US indicate that Indian IT will do well in 2023,” he added.
Global signals
Shares in Tokyo opened slightly higher on Tuesday, led by a weak yen after Wall Street ended lower on investor caution ahead of major central bank announcements. broader Topix index added 0.30 percent, or 5.95 points, to 1,988.35.
Asian equities traded cautiously and bonds posted small losses on Tuesday as investors braced for an eventful week that included central bank meetings, a slew of earnings reports and key US economic data.
Overnight, US markets fell as much as 2 percent ahead of the US Fed meeting, which begins later tonight, and big corporate earnings.
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