(RTTNews) – The trends on Gift Nifty indicate a positive start for domestic markets. That said, a stronger dollar in international markets and the total collapse in precious metals prices may lead to volatility as the session progresses.
Market participants will continue to fret over borrowings and higher transaction taxes announced in the Union Budget 2026, which was focused on stability and continuity rather than big-bang reforms.
Th government is poised to embark on a significant borrowing spree in the 2026-27 fiscal year, with gross borrowings projected at a staggering Rs. 17.2 lakh crore and net borrowings estimated at Rs. 11.7 lakh crore amid a period of rising bond yields, driven by heavy federal and state government borrowings that have outstripped demand for government debt.
The rupee is expected to face more downward pressure this week after the Budget failed to provide any direct catalysts to revive foreign investor inflows amid heightened global uncertainty.
Monthly auto sales figures, corporate earnings and PMI data may influence trading sentiment as the week progresses.
Benchmark indexes Sensex and Nifty both fell over 2 percent on Sunday during the special weekend trading session after Finance Minister Nirmala Sitharaman announced a hike in the securities transaction tax (STT) on futures and options in her Budget 2026 speech.
She defended a sharp hike in securities transaction tax on derivatives, arguing that the government could not remain silent as speculative ‘satta’ in derivatives inflicts heavy losses on small retail investors.
Asian stocks were mostly lower this morning and U.S. equity futures fell amid risk-off sentiment in financial markets.
Gold slipped below $4,750 an ounce as the dollar extended its upward trend ahead of key economic data and central bank decisions due this week.
Oil prices were down 3-5 percent in early Asian trade after reports of talks between the U.S. and Iran and amid an announcement by OPEC+ to maintain its pause on oil output increases for March.
