Sat Feb 01 19:07:01 UTC 2025: ## Union Budget 2025: Mixed Market Reaction as Sensex Closes Slightly Up, Nifty Down

**Mumbai, India** – The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman today, sparked a mixed reaction on the Indian stock market. While the BSE Sensex closed with a modest 5.39-point gain, settling at 77,505.96, the NSE Nifty ended in the red, down 22.65 points at 23,482.15.

The market showed considerable volatility throughout the day, swinging between gains and losses following the budget speech. Initially, the indices surged, driven by anticipation and early announcements focusing on agriculture, manufacturing, employment, MSMEs, rural development, and innovation. However, a subsequent decline followed the announcement of infrastructure spending, which, while a record 11.21 trillion rupees, disappointed some investors seeking a more substantial increase. The introduction of no income tax on income up to ₹12 lakh initially caused a sharp spike, followed by a significant drop before a partial recovery.

Despite the overall subdued performance of the Nifty, several sectoral indices performed well. Nifty Auto, Nifty FMCG, and Nifty Consumer Durables all registered gains. Zomato (+15 points), Maruti (+615 points), and ITC Hotels (+7.75 points) were among the top gainers on the Sensex. Conversely, Powergrid (-11 points), Larsen & Toubro (-119 points), and NTPC (-6 points) were among the biggest losers. Agriculture-related stocks surged following the announcement of the PM Dhan-Dhaanya Krishi Yojana.

Positive reactions to the budget came from various sources. Girish Wagh of Tata Motors welcomed the removal of basic customs duties on battery manufacturing materials. Experts like Heena Khushalani of EY India highlighted the budget’s focus on green initiatives and sustainable growth, while Anitha Rangan of Equirus praised its reform-centric, long-term vision. The increase in the foreign direct investment limit in the insurance sector also boosted related stocks.

The overall market reaction suggests that while the budget’s focus on consumption revival and capital expenditure generated some positivity, the lack of major surprises led to a muted response from the benchmark indices. The day’s trading highlighted the complex interplay of various announcements and market expectations in shaping the ultimate impact of the Union Budget 2025 on the Indian stock market.

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