government after returning to power in a landslide victory in the general elections concluded on May 23.
The Budget for financial year 2019-20 will be the first Budget to be presented by the country's first full-time woman Finance Minister Nirmala Sitharaman. Market participants will closely watch Budget announcements as it will set the tone for country's economic policies going ahead at a time when India's economy rose at 5.8 per cent, the slowest pace of growth in five years.
Traders have warned for wild swings in the benchmark indexes in today's trade and many analysts expect the NSE Nifty 50 Index to trade in the range of 11,700-12,100.
Here are the latest updates on stock markets:
Fifteen of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Realty Index's 0.7 per cent gain. Capital Goods, Industrials, Finance and Teleco sector gauges also rose between 0.3 and 0.6 per cent respectively.
On the other hand, S&P BSE Metal Index was top loser, down 0.3 per cent.
The S&P BSE Sensex and NSE Nifty 50 Indexes moved higher led by gains in HDFC Bank, HDFC, Reliance Industries, Larsen & Toubro, Hindustan Unilever and Kotak Mahindra Bank ahead of Union Budget for financial year 2019-20 due later in the day.
The Sensex rose as much as 124 points to touch intraday high of 40,031.81 and the NSE Nifty 50 Index advanced 35 points to 11,982.
"Market participants are expecting tax cuts in the Budget as there are no chances of tax increases this time around," AK Prabhakar, head of research at IDBI Capital told NDTV.
"Any cuts on the corporate tax front or dividend distribution tax front will be taken positively in the markets. However, high volatility is expected in markets today and Nifty is likely to touch a record high of 12,100 and on the downside support on the downside is at 11,750," Mr Prabhakar said.
"Nifty is likely to touch record high in today's session and Nifty can up to 12,100 as government is likely to announce reforms for agriculture and infrastructure sectors," Sumeet Bagadia, associate director at Choice Broking told NDTV over phone.
"On the downside support for Nifty is at 11,800, however, wild swings are expected in the benchmarks today," Mr Bagadia added.
Nifty ended above 11,900 for the third consecutive day but formed a pattern similar to shooting star on charts indicating exhaustion or reversal of trend in days to come, Nadeem Mustafa, CEO, Epic Research said.
"12,000 - 12,050 levels on the Nifty are very important as we are continuously seeing selling pressure around that zone and Nifty failing to breach it. With Budget coming up, we believe there are chances of some decisive move. One should remain cautious and have a conservative approach to the market rather than being aggressive or carrying a naked position," Mr Mustafa added.
Nifty futures on Singapore Exchange also known as the SGX Nifty rose 10 points to 11,990 indicating a flat tstart for Indian equity markets ahead of Union Budget 2019.