Budget 2025: A Look at Market Reactions and Key Takeaways
Table of Contents
- 1. Budget 2025: A Look at Market Reactions and Key Takeaways
- 2. Budget 2025 Sends Mixed Signals to Stock Market
- 3. Budget 2025: A Mixed Bag for the Stock market
- 4. Budget 2025: A Rollercoaster Ride for Indian Stocks
- 5. Budget 2025 Triggers Market Volatility: Stocks Surge, Then Turn Red After Tax Relief Announcements
- 6. Budget 2025: Stocks Surge as Government Unveils Growth-Focused Plan
- 7. Budget 2025: Stock Market Reacts to Economic projections
- 8. Budget 2025: Stock Market reacts to Union Budget Presentation
- 9. Budget 2025 Sends Market on a Rollercoaster Ride
- 10. Budget 2025: Market Optimism Amidst Volatility
- 11. Given Sanjay Malik’s expectation of a balanced budget with targeted measures to drive growth and maintain fiscal responsibility, what specific sectors or policy changes do you believe will best achieve this delicate balance?
- 12. Market Outlook: A Conversation with Sanjay Malik, Chief Economist at Zenith capital
The 2025 Budget sparked a wave of activity in Indian stock markets. Anticipation of a pro-growth strategy led to a surge on Friday, with the benchmark Sensex jumping 741 points and the Nifty rallying to close above 23,500. However, the marketS initial enthusiasm was tempered by subsequent announcements.following the Union Budget 2024, proposals for higher taxes on long-term capital gains, short-term capital gains, and trading derivatives resulted in a dip, with both the NSE Nifty and BSE Sensex experiencing a 1% decline.
While the budget outlined aspiring plans for infrastructure growth, allocating ₹11 lakh crore, equivalent to 3.4% of GDP, investors seemed to react cautiously. Shares of prominent cement companies, like UltraTech Cement, Ambuja, ACC, Shree Cement, and Dalmia Bharat, experienced declines, indicating a sense of disappointment regarding the perceived modest increase in infrastructure spending.
Despite the volatility, the Budget emphasized the government’s commitment to fostering innovation and private sector growth. Plans to develop digital public infrastructure applications aimed to boost productivity, create new business opportunities, and encourage private sector participation.
Looking ahead, the Indian economy is projected to achieve GDP growth between 6.3% and 6.8% in the fiscal year 2025-26. However, experts predict a slowdown in the current fiscal year, with the growth rate anticipated to dip to 6.4%, marking a four-year low.
Budget 2025 Sends Mixed Signals to Stock Market
The Indian stock market experienced a volatile ride on Thursday, February 1, 2025, following the presentation of the Union budget 2025. While the auto sector saw notable gains, other key indices struggled, reflecting a mixed reaction to the government’s fiscal policies.
Larsen & Toubro (L&T) suffered the biggest setback among Sensex stocks, plunging by 151 points. Powergrid and Ultracemco followed closely behind, highlighting the uncertainties surrounding certain sectors.However, the Nifty Auto index emerged as a clear winner, surging by a remarkable 478 points, propelled by a robust performance from Maruti Suzuki, which witnessed a jump of 620 points.
“The clear focus to support cleantech manufacturing, including support to lithium-ion batteries, is a welcome move to reduce our dependency on exports,” observed Heena Khushalani, partner – climate change and sustainability services at EY India, commenting on the budget’s green agenda.
The National Nuclear Mission, allocated a significant sum of 20,000 crore rupees with private sector participation, is expected to contribute to India’s energy transition. khushalani also lauded the budget’s emphasis on climate resilience and sustainable growth, notably in sectors like agriculture, fisheries, and rural development.
However, she emphasized the need for further attention to adaptation financing and climate finance taxonomy to effectively boost sustainable finance.
The overall market sentiment, though, remained cautious, with the Sensex gaining 50 points despite a post-budget plunge of over 450 points, while the nifty, even though down 12 points, had also fallen by 150 points earlier. The contrasting performances across different sectors paint a complex picture of the market’s response to Budget 2025, suggesting investors are carefully analyzing the implications of the new policies for their respective sectors.
Budget 2025: A Mixed Bag for the Stock market
The Indian stock market reacted with a cautious optimism following the presentation of the Union Budget 2025.While the Nifty and Sensex saw a dip, with the Nifty down by 75 points and the Sensex by 138 points, certain sectors, particularly those linked to consumption, witnessed significant gains.
The fast-moving consumer goods (FMCG) sector emerged as a clear winner, with the Nifty FMCG index surging by a remarkable 2006 points. Britannia, Hindustan Lever, and Godrej Consumer Products Limited were among the top performers, indicating a strong belief in the government’s focus on boosting domestic consumption.
The auto sector also saw a positive response, with a 2.1% gain, driven by the government’s decision to cut personal income tax rates. This move is aimed at stimulating consumer spending and reviving the automobile industry.
The government’s declaration to increase the foreign direct investment (FDI) limit in the insurance sector to 100% also generated positive sentiment, leading to a rise in shares of insurance companies like SBI Life, HDFC Life, and ICICI Prudential Life.
Fertiliser companies also benefited from the government’s commitment to further increase urea supply, a move that is expected to support agricultural growth.
“The budget has met market expectations, with focus on consumption revival, capex leading to some positivity,” saeid Gaurav Dua, senior vice president and head of capital market strategy at Mirae Asset Sharekhan. “The muted reaction of the benchmarks to the budget is as of no major negative surprises,” Dua added.
Economist Anitha Rangan of Equirus echoed this sentiment, describing the budget as “policy, consumption centric” and highlighting the need for strong execution to translate the outlined vision into reality. “With a special focus on long term investment encompassing people,economy and innovation,the fund mechanism of funding will encompass private participation. In addition, there is focus on urban development and revitalization along with clean energy which suggests more longer term focus.While capex growth does not look very robust, implicit capex via long term reforms shows promise,” she said.
Rangan also noted that the tax reliefs introduced at the end of the budget speech were ”the icing on the cake.”
Budget 2025: A Rollercoaster Ride for Indian Stocks
the Indian stock market experienced a dramatic roller coaster ride on February 1, 2025, following the presentation of Union Finance Minister nirmala Sitharaman’s Budget 2025.The initial announcement of no income tax on incomes up to ₹12 lakh triggered a surge, only to be followed by a sharp decline as the market grappled with the broader implications of the budget proposals.
The BSE sensex, a key indicator of the Indian stock market’s health, plummeted by 452 points, while the Nifty, another significant benchmark, shed 150 points. This volatility reflects the market’s uncertainty as investors digested the various announcements and their potential impact on different sectors.
“One of the biggest highlights of the Budget was the announcement of no income tax on income up to ₹12 lakh, which led to a quick surge and then fall in the markets,” noted a financial analyst.
The metal and energy sectors bore the brunt of the market downturn, with Nifty Metal leading the decline, falling by 1.94%. Nifty Oil & Gas followed closely, dropping by 1.93%. Nifty PSU Bank and Nifty Midsmall IT & Telecom also saw significant losses,each falling by 1.29%.
Despite the overall negative trend, some sectors showed resilience. Nifty FMCG, Auto, Realty, and Consumer Durables indices bucked the trend, registering gains. Maruti Suzuki, a major player in the automobile sector, emerged as a standout performer, with it’s shares surging by a remarkable 635 points, leading the BSE Sensex.
The market’s reaction to Budget 2025 highlights the dynamic nature of the Indian stock market and its sensitivity to government policy announcements. As investors continue to analyze the budget’s implications, market volatility is likely to persist in the coming days.
Budget 2025 Triggers Market Volatility: Stocks Surge, Then Turn Red After Tax Relief Announcements
The Indian stock market experienced a dramatic roller coaster ride on February 1, 2025, as Finance Minister Nirmala Sitharaman unveiled the Union Budget. Initially, Sensex and Nifty surged, spurred by hopes of economic boost, but swiftly reversed course following key tax relief announcements.
Nifty and Sensex witnessed early gains of 120 and 319 points,respectively,but thes gains evaporated rapidly. The Nifty eventually fell by 35 points at 12:04 pm, while Sensex dipped by 139 points, mirroring a broader market trend of cautious optimism turning to uncertainty in the wake of tax policy changes.
Finance Minister Sitharaman’s declaration of a tax waiver for individuals earning less than 12 lakh rupees sent shockwaves through the markets. The initial euphoria over this populist measure was quickly replaced by concerns about its potential impact on government revenue and fiscal stability, prompting a retreat from riskier assets.
Certain sectors, however, defied the overall bearish trend. Fisheries and fertilizer-linked stocks surged,benefiting from government pledges to bolster both sectors. Coastal Corp and Apex Frozen, representative of the fisheries industry, saw their share price increase by 4% and 5.2% respectively.
The market’s tumultuous reaction to Budget 2025 underscores the intricate dynamics between fiscal policy, investor sentiment, and economic reality.
Budget 2025: Stocks Surge as Government Unveils Growth-Focused Plan
The Indian stock market responded positively to Finance Minister Nirmala Sitharaman’s Budget 2025 presentation, with both the Sensex and Nifty indices showing significant gains.The BSE Sensex surged by 180 points,while the NSE Nifty climbed by 67 points as the Budget began,reflecting investor optimism about the government’s economic roadmap.
Sitharaman emphasized a focus on ten key areas, including agriculture, manufacturing, employment, and the growth of Micro, Small, and Medium Enterprises (MSMEs). “This budget aims to work on transformative reforms,” she declared, highlighting the government’s commitment to inclusive development.
A major highlight of the Budget was the announcement of a social security scheme for gig workers, a move aimed at providing financial security to a growing segment of the workforce. the government also unveiled plans for power sector reforms, nuclear energy missions, and credit cards for farmers, signaling a push towards modernization and financial inclusion.
The Budget’s emphasis on MSMEs, with a pledge to enhance their investment by 2.5 times, resonated strongly with investors.”MSMEs with quality products are responsible for the economy,” Sitharaman stated, underscoring the vital role these businesses play in driving economic growth and generating employment opportunities for 7.5 crore people.
The Budget’s announcement of an urban rejuvenation program signaled the government’s commitment to improving infrastructure and enhancing the quality of life in cities.
Investors reacted positively to the Budget’s growth-oriented proposals, pushing the Sensex further upward, reaching a 216-point increase, while the Nifty climbed another 65 points. the gains,fueled by optimism about the government’s economic agenda,demonstrated the market’s confidence in India’s future prospects.
Budget 2025: Stock Market Reacts to Economic projections
The Indian stock market is on edge as Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2025.With much of the contry’s economic outlook hinging on the announcements, investors are eager to see how the government plans to address key challenges and stimulate growth.
On the morning of February 1st, the BSE Sensex and the NSE Nifty both saw positive gains, reflecting the general optimism surrounding the Budget. As Finance Minister Sitharaman began her presentation, the Sensex had already jumped 240 points while the Nifty gained a robust 77 points.
“Accelerating growth, inclusive development are the focus of the budget,” stated Finance Minister sitharaman as she opened her speech. This emphasis on inclusive growth and sustainable development sent a reassuring message to the market, driving further gains.
While the overall market sentiment remained positive, the Nifty IT index saw a slight decline of 50 points, although Persistent Systems bucked the trend with a strong 60 point increase and Infosys recorded a modest 6 point gain.
Experts are closely watching the announcements pertaining to infrastructure,housing,and fiscal measures,anticipating potential triggers for specific sectors. The real estate sector,for instance,saw a 1% surge in anticipation of policies that coudl boost housing and infrastructure development.
this Budget day is a crucial moment for India, and the stock market’s reactions are a real-time reflection of investor confidence. As Finance Minister Sitharaman presents her proposals, the nation waits with bated breath to see how these will shape the future of the Indian economy.
Budget 2025: Stock Market reacts to Union Budget Presentation
The Indian stock market opened cautiously ahead of the Union Budget 2025 presentation, initially dipping before quickly recovering.Investors are eagerly awaiting announcements that could impact various sectors.
as of 10:22 AM, the Sensex showed a positive trend, surging by 192 points, while the nifty gained 51 points. This upward momentum reflects market optimism surrounding the potential for a growth-oriented budget.
Within the Sensex, IndusInd Bank emerged as a frontrunner, with shares climbing 25 points. Conversely, Titan faced downward pressure, shedding 34 points.
Sector-specific indices also witnessed notable movements. The Nifty Auto sector surged by 103 points, driven by strong performances from MRF, Mahindra & Mahindra, and Bosch Limited.MRF led the charge, soaring 798 points, followed closely by Mahindra & Mahindra’s 115-point increase and Bosch’s 50-point surge.
Among consumer staples, Proctor and Gamble Hygiene and Healthcare Limited experienced a notable 42.95-point rise on the Nifty FMCG index. Colgate Palmolive and Hindustan unilever followed suit, gaining 28 and 16 points respectively.
Despite the overall positive sentiment, some Sensex stocks faced downward pressure. Nestle India Ltd recorded the steepest decline, falling 1.08% to ₹2,288. titan Company Ltd followed closely, shedding 1% to ₹3,454.75,while Hindustan Unilever Ltd dipped 0.54% to ₹2458.
Market analysts closely monitor these early reactions to gauge investor sentiment and anticipate potential market trends in the wake of the Union Budget 2025.
Budget 2025 Sends Market on a Rollercoaster Ride
The stock market opened with a surge of optimism on February 1st, 2025, as investors eagerly awaited the Union Budget presentation. The Sensex climbed 113 points, while the Nifty index saw a rise of 37 points, signaling a positive start to the special trading session.
However, the market’s initial enthusiasm proved short-lived.By 9:27 am, both the Sensex and Nifty had turned red, dipping by 4.94 points and 11 points respectively. This fluctuation reflects the inherent volatility that often accompanies major economic announcements.
Despite the initial dip, the market rebounded later in the morning, with the Sensex rising by 182 points and the Nifty gaining 69 points. This volatile behavior underscores the uncertainty surrounding the budget’s potential impact on various sectors.
Among the Nifty sectoral indices, the Oil & Gas sector experienced the most significant decline, falling by 0.34% to reach 10,552.05. The FMCG and PSU Bank sectors followed suit, with drops of 0.27% and 0.20% respectively.
As the day progressed, TCS joined Bajaj Finserv and Titan in the bottom three companies on the Sensex, with its shares falling by 16 points. This suggests that certain sectors and individual companies might be facing headwinds in the wake of the budget announcements.
The market’s rollercoaster ride highlights the importance of staying informed and adapting to the ever-changing economic landscape. Investors will be closely watching the budget’s details to gauge its long-term impact on their portfolios.
Budget 2025: Market Optimism Amidst Volatility
The Indian stock market is buzzing with anticipation as Budget 2025 approaches. After experiencing its longest monthly losing streak in 23 years, the NSE Nifty is showing signs of recovery, fueled by hopes for a pro-growth budget. The index surged 3% in the last four trading sessions, marking a positive turnaround from its recent slump.
Akshay Chinchalkar, Head of research at Axis Securities, points out that this four-day winning streak is the longest as december 4th, 2023. “In doing so, we also managed a close above the 10th january breakdown area, which is a start for bulls looking to extend the rebound,” he said. However, Chinchalkar cautions that “overhead resistance is aplenty,” with key hurdles at 23632 and 23763 – 23811.He advises investors to watch for support levels at 23339 – 23387 and 23109, noting that market volatility is expected to remain elevated due to the budget announcement.
Adding to the optimism, a report by Jefferies predicts that Indian stock markets will bottom out before February 7th, 2025, assuming a budget without any major tax surprises and a pro-growth stance from the Reserve Bank of India. The report suggests that rate-sensitive stocks are likely to benefit from this anticipated rally.
Simultaneously occurring, the Economic Survey, released on Friday, offers a more cautious outlook. It warns against “elevated market valuations” and highlights the potential impact of a US market correction on India,particularly due to the increased participation of younger,relatively new retail investors.
“elevated valuations and optimistic market sentiments in the US raise the likelihood of a meaningful market correction in 2025. Should such a correction occur,it could have a cascading effect on India,especially given the increased participation of young,relatively new retail investors,” the survey noted.
As the nation awaits the Union Budget 2025, the market sentiment remains a mix of hope and caution. Investors are eagerly looking for signals from the government on economic growth, fiscal policy, and measures to boost investor confidence. The coming days will be crucial in determining the direction of the market and shaping the economic landscape for the year ahead.
Given Sanjay Malik’s expectation of a balanced budget with targeted measures to drive growth and maintain fiscal responsibility, what specific sectors or policy changes do you believe will best achieve this delicate balance?
Market Outlook: A Conversation with Sanjay Malik, Chief Economist at Zenith capital
As the union Budget 2025 draws near, anticipation is running high across India. We spoke with Sanjay Malik, Chief Economist at Zenith Capital, to get his expert insights on the market’s expectations and potential reactions to the upcoming announcement.
Archyde: Sanjay, the market has been experiencing some volatility leading up to the Budget. What are the key factors driving this uncertainty?
Sanjay Malik: The market is reflecting a multitude of factors. Firstly, after notable gains in recent months, valuations have become a concern for some investors. Secondly, global economic headwinds, especially the US-China trade war and rising interest rates, are creating a sense of caution. there’s a degree of uncertainty around the specifics of the Budget, particularly regarding tax policies and infrastructure spending.
Archyde: What are the most critical sectors investors will be watching during the Budget presentation?
Sanjay Malik: Infrastructure advancement, consumer goods, and technology will be closely scrutinized. Investors will be looking for concrete announcements and policy changes that could boost growth in these sectors.
Archyde: Do you anticipate a pro-growth budget or one focused on fiscal consolidation?
Sanjay Malik: That’s the million-dollar question! It’s a balancing act. The government will undoubtedly aim to stimulate growth,
but fiscal discipline will also be a key consideration.My anticipation is a balanced approach,with targeted measures to
drive growth while maintaining fiscal responsibility.
Archyde: How do you expect the market to react to the Budget, both in the short and long term?
Sanjay Malik: The initial reaction will likely be driven by sentiment, and we could see some short-term volatility.
Long-term reactions will depend on the substance of the proposals. If the Budget delivers on its promises of growth and
structural reforms, it could inspire renewed investor confidence and lead to sustained market gains.
What are your thoughts on the Budget’s potential impact on your investment strategy? Share your opinions in the comments below!
