Mumbai, India (BBN) – The Nifty and the Sensex were trading flat after four straight sessions of gains due to caution ahead of the federal budget, while broader sentiment was also hit by fears about the impact of US President Donald Trump’s immigration curbs.
The Union Government is due to present its 2017/18 Budget on Wednesday, with shares last week posting their biggest weekly gains in eight months on hopes the Government will announce incentives to ease the impact from a bold and risky gamble to outlaw high-value old currency bills, reports The Hindu Business Line.
But further caution set in on Monday, especially as Asian shares fell on worries that Trump’s ban on the entry of refugees into the US would prove destabilising for the rest of the world.
President Donald Trump introduced immigration curbs that sparked criticism at home and abroad, adding to fears that his ‘America First’ policy may prove destabilising for the rest of the world.
Trump had on Friday put a 120-day hold on allowing refugees into the country, an indefinite ban on refugees from Syria and a 90-day bar on citizens from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen.
At 2:00pm, the 30-share BSE index Sensex was up 5.07 points or 0.02 per cent at 27,887.53 and the 50-share NSE index Nifty was up 9.35 points or 0.11 per cent at 8,650.60.
Among BSE sectoral indices, TECk index was up 0.69 per cent, followed by heatlhcare 0.35 per cent, capital goods 0.3 per cent and realty 0.16 per cent.
On the other hand, auto index was down 0.75 per cent, PSU 0.58 per cent, consumer durables 0.56 per cent and banking 0.5 per cent.
Top five Sensex gainers were Bharti Airtel (+7.65 per cent), Reliance (+1.38 per cent), Sun Pharma (+1.18 per cent),
Dr Reddy’s (+1.09 per cent) and L&T (+0.72 per cent), while the major losers were Tata Motors (-1.95 per cent), Tata Steel (-1.33 per cent), TCS (-1.16 per cent), ONGC (-1.05 per cent) and Bajaj Auto (-1.00 per cent).
“Markets are a little wary of what lies in the budget and have probably have rallied too far on the assumption that some good is in the offing,” said Saurabh Jain, assistant vice-president of research at SMC Global Securities.
A report by IFA Global said: “Asian stock markets are trading in the red, with Hang Seng index trading lower by 13 points and Nikkei index is trading lower by 144 points as investors eye the international backlash against US President Donald Trump’s immigration policy, which has added pressure on the dollar.
US stock markets closed on a mixed note.
The Dow Jones Industrial Average closed lower by 7 points and Nasdaq index closed higher by 5 points.
US equities closed on a mixed note after US President Donald Trump on Friday introduced immigration curbs that sparked a backlash in the United States and abroad.
European stock markets closed on a flat note, with FTSE closed higher by 23 points and CAC lower by 27 points.
European markets ended the day lower after strong gains earlier this week, with investors digesting corporate earnings and fluctuations in currency markets.”