Interim budget to be watched

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could fall 28 points at the opening bell. Berger Paints India, Dr. Reddy's Laboratories, State Bank of India and Titan Company will announce October-December 2018 quarterly results today, 1 February 2019. Investors will focus on the interim budget to be announced today, 1 February 2019.

The interim budget will be the last one presented by the current NDA government led by Prime Minister Modi, before the 2019 general elections in April. The government is expected to make a host of populist announcements in the budget. It is widely expected that the interim budget may contain tax sops and a certain package for the farm sector. The Budget session of Parliament began yesterday. The session will conclude on 13th of next month.

Overseas, Asian stocks were little changed on Friday with US-China trade talks set to continue later this month. US stocks closed mostly higher Thursday led by technology shares after some solid corporate reports.

Meanwhile, market observers were watching developments between the U.S. and China as officials there attempted to forge the framework toward a resolution of tariff disputes in the final day of this round of negotiations.

Back home,key equity indices surged yesterday, 31 January 2019 ahead of the Union Interim Budget on Friday, 1 February 2019. Positive global cues also boosted investors sentiment. Risk appetite in the global stock markets improved after the US Federal Reserve left interest rates unchanged and said it would be patient with further rate hikes. The Sensex surged 665.44 points or 1.87% to settle at 36,256.69, its highest closing level since 22 January 2019.

The trading activity on that day showed that the foreign portfolio investors (FPIs) bought shares worth a net Rs 3006.41 crore yesterday, 31 January 2019, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 1634.32 crore yesterday, 31 January 2019, as per provisional data.

Among corporate news,Hero MotoCorp's net profit fell 4.5% to Rs 769.10 crore on 7.5% increase in net sales to Rs 7,864.82 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 31 January 2019.

On a consolidated basis, Bharti Airtel's net profit fell 71.81% to Rs 86.20 crore on 0.99% increase in net sales to Rs 20,519.20 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 31 January 2019.

Power Grid Corporation of India's net profit rose 14.2% to Rs 2,331.17 crore on 12.8% increase in net sales to Rs 8,471.17 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 31 January 2019.

On a consolidated basis, Vedanta's net profit fell 21.06% to Rs 1,574 crore on 2.84% decrease in net sales to Rs 23,669 crore in Q3 December 2018 over Q3 December 2017. The result was announced after market hours yesterday, 31 January 2019.

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