Tue Feb 04 16:21:55 IST 2025: ## India’s Budget Fuels Stock Market Surge, Railway Investment Drives Growth

**Mumbai, February 4, 2025** – Indian stock markets experienced a significant rally today, with the BSE Sensex climbing 786.65 points and the Nifty 50 advancing 231.10 points. This surge follows the recent Union Budget 2025-26, which unveiled a record ₹2.52 lakh crore capital outlay for railways, including a dedicated ₹45,530 crore for rolling stock modernization.

The substantial railway investment is expected to boost domestic manufacturing, create jobs, and lower logistics costs, aligning with India’s long-term infrastructure and sustainability goals. This initiative aims to increase the rail’s modal share in freight movement from 27% to 45% by 2030. The budget also includes significant tax cuts for the middle class, anticipated to stimulate consumption and further drive economic growth.

Fitch Ratings affirmed its ‘BBB-‘ rating for India with a Stable Outlook, noting the budget’s commitment to gradual deficit reduction. While acknowledging potential revenue collection slippages, Fitch projects real GDP expansion of 6.4% in FY25 and 6.5% in FY26.

The positive market sentiment was reflected in strong performances by several companies. Bharat Bijlee saw its shares soar 19.24%, while V-Mart Retail’s stock rose 5.05% following strong Q3 results. Welspun New Energy signed a ₹13,500 crore MoU with the Odisha government for renewable energy projects. Conversely, some companies reported mixed results, with Premier Energies facing questions about its US expansion plans and Asian Paints seeing a decline in net profit.

The day’s trading saw 2,456 stocks advance on the BSE, against 1,415 declines, with a total of 4,033 stocks traded. 61 stocks hit 52-week highs, while 81 hit 52-week lows.

The budget’s focus on infrastructure development, coupled with positive global cues following a temporary pause on US tariffs, contributed significantly to the market’s positive performance. However, analysts also noted potential challenges, including the need for continued fiscal discipline and the impact of global economic uncertainties. The upcoming Reserve Bank of India’s Monetary Policy Committee meeting is also keenly awaited, with expectations of a potential rate cut.

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