Budget 2025 Impact: Volatility Looms Over Stock Market as Key Sectors Take Center Stage

Nifty and Sensex brace for Budget 2025 volatility; infrastructure, railways, and banks likely to dominate trading sentiment.

February 1, 2025: The Indian stock market indices, Sensex and Nifty 50, are poised for heightened volatility today, February 1, 2025, as Finance Minister Nirmala Sitharaman presents the Union Budget 2025-26 in Parliament. Key sectors like defence, railways, infrastructure, and banks are expected to attract investor focus, with stock and commodity exchanges holding special trading sessions on Budget Day.

Also Read: Gold Prices Hit Record ₹83,800 Per 10 Grams: Key Drivers Behind the Surge

Stock Market Highlights:

Also Read: Economic Survey Projects 6.3%-6.8% Growth for Indian Economy in FY26

1. Volatility in Focus:
   Historically, Nifty 50 has exhibited intraday fluctuations of 2-3% on Budget Day, creating both opportunities and risks for traders.
2. Nifty’s Budget Day Trends:
   In the past 25 years, Nifty has moved less than 1% on only eight occasions during Budget sessions. Conversely, the sharpest fall of 5.8% was recorded in 2009, while gains of over 4% occurred in 2021 and 2001.
3. Economic Survey Insights:
   The Economic Survey FY25, tabled yesterday, projected GDP growth of 6.3%-6.8% for FY26 and highlighted the need for 8% growth over the next two decades to achieve developed nation status by 2047.
   Key takeaways:
   • 7.9 million non-farm jobs annually required until 2030.
   • Resilience in the external sector, but calls for improved FDI.
   • AI’s impact on employment needs strategic mitigation.
4. PM Modi’s Address:
   Prime Minister Modi’s remarks ahead of the Budget Session invoked Goddess Lakshmi, signaling possible measures for the middle class, women, and the underprivileged. His emphasis on “inclusion, innovation, and investment” has bolstered market sentiment.
5. Key Expectations:
   Market analysts anticipate fiscal strategies that ensure stability while fostering inclusive growth. Expected highlights include:
   • Policies to position India as a global manufacturing alternative to China.
   • Accelerated investment in infrastructure.
   • Green initiatives and strategic tax reforms to attract foreign investments.
6. Sectoral Focus:
   Infrastructure, defence, and banking stocks are likely to see significant action. With PM Modi hinting at women-centric initiatives and tax benefits for the middle class, these sectors may experience a positive impact.

Closing Insights:

Also Read: Will Budget 2025 Bring Income Tax Relief for the Middle Class? PM Modi Drops Hints

As the Union Budget 2025 is presented, the Indian stock market is likely to offer both risks and opportunities for investors. Market experts advise caution amidst volatility and emphasize a focus on sectors aligned with the government’s growth vision.

Tags:

Union Budget 2025, Nifty 50, Sensex Today, Indian Stock Market, Economic Survey FY25, Infrastructure Stocks, Defence Sector Growth, Tax Reforms, PM Modi Budget Speech, Women-Centric Policies