Indian benchmark indices declined in early trade on Monday, weighed down by selling pressure ahead of the Economic Survey later in the day and the Union Budget, which will be presented on Tuesday.

Markets were also tracking Asian shares, which slid despite Wall Street futures gaining strength following President Joe Biden’s decision to withdraw from the election race.

The Nifty 50 index dropped 100 points to 24,430, while the BSE Sensex fell by 250 points to 80,391. Across the broader market, the Nifty Next 50, Nifty 100, Nifty Midcap, and Nifty Smallcap also slipped.

“Indian markets will look at the Economic Survey, to be tabled in the Lok Sabha at 1 pm. Though the Economic Survey is more of a strategic document, with aspirational notes on what could be done, the data points on growth and the government’s assumptions on revenues and expenditure will be watched closely,” said Ajay Bagga, a banking and market expert.

Regarding the impact of Biden’s decision on the markets, Bagga said: “Markets had largely factored in a high probability of a Trump 2.0 Presidency. To that extent, markets should take this announcement in stride and have a limited impact.”

Historically, Indian markets have responded positively to Union Budget announcements, as evidenced by significant post-budget gains in recent years. Foreign portfolio investors have notably increased their investments, injecting ₹15,420 crore into Indian equities last week and contributing to a total of ₹30,772 crore so far in July.

(Input from agencies)