Sun Feb 02 18:02:52 UTC 2025: ## Indian Stock Market Shows Volatility on Budget Day

**Mumbai, India** – India’s stock market experienced significant volatility on Union Budget day, with benchmark indices fluctuating wildly in response to the Finance Minister Nirmala Sitharaman’s announcements. While the Sensex initially gained over 200 points, it later plunged close to 500 points before settling marginally lower at 77,411.27 (down 89 points), and the Nifty 50 closed at 23,464.55 (down 43.85 points).

The initial market reaction was mixed. Early gains were attributed to the budget’s focus on “GYAN” (Garib, Yuva, Annadata, and Nari Shakti – poor, youth, farmers, and women empowerment) and planned reforms across six sectors: taxation, power, urban development, mining, finance, and regulation. However, the subsequent decline followed the announcement of tax relief measures, which, while intended to boost middle-class spending, failed to fully excite investors.

Experts offered varied interpretations. Puneet Singhania of Master Trust Group attributed the volatility to profit-taking after recent gains and a period of digestion of the budget’s implications. He noted that the budget largely met expectations, focusing on marginalized communities and manufacturing, potentially spurring private capital expenditure in the medium to long term. Other analysts highlighted the potential for increased investment in sectors like green energy, EVs, railways, defense, and infrastructure.

Dr. V K Vijayakumar of Geojit Financial Services pointed to the limited fiscal space for substantial tax relief as a factor influencing market sentiment. Ajit Mishra of Religare Broking Ltd. advised a cautiously optimistic stance, citing potential support levels for the Nifty. Meanwhile, VLA Ambala of Stock Market Today identified potential resistance and support levels for the Nifty based on current market trends. Swapnil Aggarwal of VSRK Capital emphasized the Economic Survey’s positive outlook for the Indian economy, predicting growth between 6.3% and 6.8% in 2025 and highlighting opportunities in manufacturing, infrastructure, and digital transformation.

The day’s trading highlighted the inherent uncertainty surrounding budget announcements and the resulting impact on investor behavior. While some experts predicted long-term market optimism, the initial reaction underscored the short-term volatility inherent in reacting to major economic policy shifts.

Read More