Markets Brace for Volatility Post-Budget 2025 Amid Global Trade Tensions and RBI Rate Cut Speculation

Budget neutrality, Trump tariffs, and global market cues weigh heavily on Sensex and Nifty; Investors await RBI’s policy review and key corporate earnings.

February 3, 2025: Stock Markets Update – February 3, 2025:
The Indian stock markets are poised for a volatile session as Budget 2025’s neutral reception, global trade tensions, and weak international markets weigh on investor sentiment. At 6:50 AM, GIFT Nifty futures were trading 173 points lower at 23,382, signaling a potential gap-down opening for Sensex and Nifty.

Also Read: PM Modi Fully Backed Tax Cuts, Took Time to Convince Bureaucrats: FM Sitharaman

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Budget 2025: Market Reaction
The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, elicited a mixed response from the markets. While measures to rationalize import duties and bolster agriculture, rural development, and renewable energy were welcomed, the income tax relief failed to provide a significant boost to market sentiment.

In Friday’s session, the Sensex closed flat at 77,505.96, while the Nifty50 dipped 0.11% to 23,482.15.

Also Read: Budget 2025: Understanding ₹12 Lakh Tax Exemption and New Slab Benefits

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Focus Shifts to Earnings and PMI Data
As the market digests the Budget, attention now turns to January’s manufacturing PMI data and key corporate earnings. Companies like Alembic Pharma, Power Grid, Divi’s Laboratories, and Gland Pharma are expected to release their quarterly results.

Also Read: Memes Take Over Social Media After Budget 2025 Tax Reforms Announcement-Here Are The Best

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RBI Policy Outlook
The Reserve Bank of India is widely anticipated to announce a 25-basis-point cut in the repo rate on February 7, marking the first rate cut in five years. This decision comes as the Budget aims to balance consumption support with fiscal discipline.

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Global Trade Tensions
Markets remain wary of escalating trade tensions as US President Donald Trump imposes tariffs of 25% on imports from Canada and Mexico and 10% on Chinese goods, effective Tuesday. These tariffs are expected to impact global supply chains, with potential repercussions for India.

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Commodities Market
Gold prices surged past $2,800 per ounce, fueled by investor concerns over Trump’s tariffs and rising inflation risks. Meanwhile, oil prices declined, with Brent crude closing at $76.76 per barrel and WTI at $72.53.

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Global Markets Overview
Asian markets opened lower, with the ASX 200 down 0.75%, Nikkei falling 2.22%, and Kospi declining 2.81%. US markets also ended the week in the red, with the Dow Jones, S&P 500, and Nasdaq posting losses. Investors are now eyeing manufacturing data from the US, UK, and China, alongside Eurozone inflation figures.

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Tags:

Stock Market, Budget 2025, GIFT Nifty, RBI Rate Cut, Trump Tariffs, Sensex, Nifty, Corporate Earnings, Gold Prices, Brent Crude