Sensex slumps over 200 in the opening session, recovers soon Budget 2020

Market benchmark Sensex slumped over 200 points in the opening session on Saturday ahead of the release of the Union Budget 2020 to be presented by Finance Minister Nirmala Sitharaman in Parliament. 

After shedding 279 points in early trade, it recovered soon and was trading at 40,801.44 (up by 77.95 or 0.19%) at 10:15 am. 

The broader NSE also opened in red and was trading at 11,977.70 (down by 58.10 or 0.48%) at 1:15 am. 

In the previous session, Sensex settled 190.33 points, or 0.47%, lower at 40,723.49, after the Economic Survey suggested relaxing fiscal deficit target to boost growth from a decade low.

Likewise, the broader NSE Nifty shed 73.70 points, or 0.61%, to finish at 11,962.10.

On a net basis, foreign institutional investors sold equities worth Rs 4,179.12 crore, while domestic institutional investors purchased shares worth Rs 3,816.44 crore on Friday, data available with stock exchanges showed.

According to analysts, investors are cautious ahead of the Union Budget as all eyes will be on how centre is going to bring growth as any increase in spending would result in widening of fiscal deficit.

Negative cues from global markets amid concerns over China’s coronavirus outbreak continued to weigh on investor sentiment here, traders said.

Benchmarks on Wall Street ended with sharp losses on Friday.

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