Stock markets open flat ahead of Union Budget 2025; Sensex, Nifty show volatility
PTC Web Desk: Benchmark stock market indices opened flat on Saturday as investors awaited key announcements from Union Budget 2025. While markets saw a slight uptick initially, early gains were quickly erased before recovering again.
At 9.52 am, the S&P BSE Sensex was up 263.94 points at 77,764.51, while the NSE Nifty50 gained 65.95 points to reach 23,574.35. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that market reactions would be swift in response to budget announcements. Gains in FMCG and auto stocks supported the initial rise, while IT stocks traded in red.
Among individual stocks, IndusInd Bank led the gainers with a 2.68% increase, followed by Indian Hotels Company (2.49%), BEL (2.05%), Mahindra & Mahindra (1.86%), and NTPC (1.73%).
On the losing side, Hero MotoCorp fell 1.34%, Dr. Reddy's Laboratories dropped 1.04%, ONGC declined 0.63%, BPCL shed 0.57%, and Grasim Industries slipped 0.55%.
Investors are keenly watching for potential personal income tax cuts aimed at boosting middle-class consumption and driving economic recovery. However, analysts highlight limited fiscal space for major tax relief.
"The market is looking for growth-oriented measures rather than adjustments in capital gains taxation. The impact of the budget on the market will be short-lived, with growth and earnings trends guiding the long-term direction," Vijayakumar added.
Broader markets showed strong momentum, with the Nifty Smallcap100 index rising 0.96% and the Nifty Midcap100 gaining 0.81%. India VIX, the volatility index, declined 0.80%, reflecting reduced market uncertainty.
- With inputs from agencies
