Sensex, Nifty slip post-budget day
The stock market tumbled on Monday, February 3, the first session after the Union Budget 2025. Metal, IT, telecom, and real estate stocks led the decline.
At 9:20 am IST, the BSE Sensex dropped 680.06 points (0.88%) to 76,825.90. The NSE Nifty slipped 224.45 points (0.96%) to 23,257.70.
Akshay Chinchalkar, Axis Securities’ Head of Research, predicted a gap-down opening. He cited a selloff in US equity futures and regional markets, including the Gift Nifty. “Expect higher volatility this month. Historically, February has delivered the worst Nifty returns, averaging a 1% loss,” he said.
Budget 2025 and Market Reactions
Finance Minister Nirmala Sitharaman presented the budget on Saturday, February 1. Markets remained open that day to absorb key policy changes. This was her eighth consecutive budget under the Modi 3.0 government.
Major announcements included zero tax for incomes below ₹12.75 lakh, enhanced MSME credit guarantees, and custom duty exemptions for 35 EV-related capital goods. The government also announced a ₹500 crore AI Centre of Excellence and a national framework for Global Capability Centres (GCCs).
Motilal Oswal, CEO of Motilal Oswal Financial Services, viewed the budget favorably. “Consumption-driven sectors like FMCG, auto, and footwear will benefit. MSME support will also boost several industries,” he said. The planned capex spending of ₹11.2 lakh crore met market expectations.
Biggest Losers and Gainers
Larsen & Toubro led the Sensex losers, falling 3.22% to ₹3,336.25. Tata Steel dropped 2.78% to ₹129.25, while ITC Hotels declined 2.26% to ₹168.50.
Only eight of the 30 Sensex stocks traded in the green. All Nifty sectoral indices were in the red. The Nifty Metal Index fell 3.19% to 8,034.10. Nifty Midsmall IT & Telecom dropped 2.38% to 10,038.05, while Nifty Realty declined 2.07% to 932.75.
Volatile Trading Session
The market fluctuated throughout budget day. It opened weak but turned green as Sitharaman began her speech at 11 am. At that time, the Sensex climbed 254.25 points (0.33%) to 77,754.82, and the Nifty gained 82.55 points (0.35%) to 23,590.95.
Real estate, media, and mid-cap financial stocks rose, but oil & gas, FMCG, and PSU bank stocks struggled.
By closing, the Sensex ended nearly flat, up just 5.39 points at 77,505.96. The Nifty slipped 26.25 points to 23,482.15.
Real estate, FMCG, and consumer durables performed best, while PSU banks, IT, and oil & gas stocks lagged. The market remains on edge as investors digest budget impacts.
