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The Indian stock markets witnessed a highly volatile session on Budget day, with the benchmark indices closing nearly unchanged despite fluctuations during the Union Budget speech by the Finance Minister, according to ANI.
As per ANI reports, the Nifty 50 index ended the trading day at 23,482.15, slipping by 26.25 points (-0.11 per cent), while the BSE Sensex closed at 77,505.96, marking a marginal gain of 5.39 points (+0.01 per cent). The market movement reflected mixed sentiments, as investors reacted to key Budget announcements impacting various sectors.
Analysts noted that the Budget's emphasis on consumption-led growth sparked strong buying interest in certain segments. The Fast-Moving Consumer Goods (FMCG) and Realty sectors, in particular, surged by over 3 per cent on the National Stock Exchange, indicating a positive response from investors. However, selling pressure was observed in IT, metals, banking, and pharmaceutical stocks towards the close of the session.
Commenting on the Budget's influence on the markets, Akshay Chinchalkar, Head of Research at Axis Securities, stated, "It is a consumption-driven Budget, and this is clearly reflected in the strength of the FMCG sector. The personal tax reliefs announced will result in higher disposable income for the middle class, potentially boosting spending. However, the revenue loss from these tax benefits will need to be offset, which could be contributing to the market's volatility."
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As per ANI reports, out of the Nifty 50 stocks, 22 ended in positive territory, whereas 30 registered losses.
Providing a broader perspective, Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, remarked, "This Budget aligns with the Triveni Sangam expectations by increasing capital expenditure (CapEx), driving consumption, and managing the fiscal deficit effectively. These were the three critical elements the market was keenly watching. While there may be a shift in investment preferences from infrastructure and CapEx towards consumption-driven stocks in the short term, long-term investors should continue focusing on infrastructure and investment-oriented sectors."
Despite the flat closing, market experts believe that the Budget's focus on consumption and fiscal prudence could provide a foundation for sustained economic growth in the long run. However, investor strategies will play a crucial role in determining how portfolios balance between consumption-led sectors and long-term investment avenues.
According to ANI, analysts anticipate further market movements in the coming days as investors digest the Budget's implications and adjust their positions accordingly.
