Key indices may remain range-bound

Benchmark indices are expected to remain range-bound in the run-up to the Union Budget as analysts do not expect major policy changes on Sunday.

- Informist

Benchmark indices are expected to remain range-bound in the run-up to the Union Budget as analysts do not expect major policy changes on Sunday.

The government is likely to remain tightfisted about expenditure, analysts said. However, a positive surprise, particularly regarding capital expenditure or consumption, could boost market sentiment. Persistent selling by foreign portfolio investors amid a deteriorating rupee is likely to limit any gains, analysts said.

The Nifty 50 settled at 25418.90 points, up 76.15 points or 0.3%. The 50-stock index is expected to face resistance at 25500 and find support at 25200, Rupak De, a technical analyst at LKP Securities, said. "While we cannot say that a trend reversal (negative to positive) is underway, there are chances of a slight recovery in the markets,” he said. Among other worries, the spat between US President Donald Trump and Federal Reserve Chair Jerome Powell is a concern for global equity markets.