Edited by Deepali Verma
Stock markets opened higher, ahead of the interim Union budget on February 1 leading up to national elections later this year. Sensex was recorded trading at 71,765 points as of 9.15 am IST, suggesting that the NSE Nifty 50 opened 20 points higher at 21,746.
There are expectations that Prime Minister Narendra Modi will avoid spending big on new welfare programmes in the budget falling before the general election. However, there will exist a greater focus on infrastructure, while narrowing the budget gap.
Major policy changes and announcements are considered to be unlikely. The expansion in the government’s capital expenditure as well as the extent of fiscal consolidation would be scrutinised closely, said ICRA in a note.
The Finance Minister Nirmala Sitharaman will be announcing the budget for the financial year 2024-25, which starts on April 1, at 11 am.
