Stock markets in India are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the capital goods sector and IT sector witnessing maximum buying interest. Consumer durable stocks are trading in the red.

The BSE Sensex is trading up 140 points (up 0.4%) and the NSE Nifty is trading up 39 points (up 0.4%). The BSE Mid Cap index is trading down by 0.3%, while the BSE Small Cap index is trading up by 0.5%. The rupee is trading at 63.62 to the US dollar.

Market participants are keeping close tabs on Union Budget 2018 to be presented by Finance Minister Arun Jaitley.

Investors will keep an eye out on government’s decision on long-term capital gains (LTCG) on shares and corporate tax.

On the sectoral front, companies operating in the real estate sector and housing finance sector will be in focus. The sector is in doldrums and the government may bring in some tax reforms in the Budget to provide a boost to the sector.

Also, companies catering to the road sector and infrastructure sector could be in focus as the government is laying out plans to strengthen the infrastructure of the Indian economy.

Companies catering to the agriculture segment would also be in the news as the government is likely to doll out certain reforms which would be beneficial to the farmers.

We will analyze and share our views on the Union Budget 2018 for you in today’s edition of The 5 Minute WrapUp. Stay tuned.

Jaitley faces dual challenge of maintaining its stance on fiscal consolidation and sticking it fiscal deficit target of 3%.

Note that India’s December trade deficit widened to its highest in more than three years. This was seen as higher import bills for gold and crude oil weighed on rising exports.

Trade Deficit Widens

A wider current account deficit in the midst of a sharp rise in oil prices, fiscal slippage risks, and above-target inflation point to a weaker macro backdrop for the economy.