Special Trading Session Today: Union Budget 2025 and Its Impact on Indian Stock Markets
Special Trading Session Today: Union Budget 2025 and Its Impact on Indian Stock Markets
Today, February 1, 2025, marks a significant event for Indian investors as the stock markets, including the BSE and NSE, open for a special trading session. This is to accommodate real-time reactions to the presentation of the Union Budget 2025 by Finance Minister Nirmala Sitharaman. Typically closed on weekends, the markets are operational from 9:15 AM to 3:30 PM today.
Key Updates from Today's Session
Market Performance
After a day filled with initial volatility, the Sensex concluded nearly flat with a marginal gain of just 5 points, while the Nifty50 closed slightly lower. Throughout the session, fluctuations were evident as investors carefully analyzed the budget's proposals. Despite the ongoing market dynamics, investors remain cautious amidst broader economic concerns.
Sector Highlights
- FMCG and Auto Stocks: These sectors reported gains of up to 7% following the announcement of increased income tax exemptions under the New Tax Regime, which are predicted to enhance disposable incomes and spur consumption.
- Insurance Stocks: Life insurance companies also saw a remarkable surge in shares, climbing by up to 7%. This followed the government’s proposal to permit 100% foreign direct investment (FDI) in insurance firms making domestic premium investments.
- Energy Stocks: In the energy sector, reactions were mixed as the budget detailed a Nuclear Energy Mission aiming for 100 GW of nuclear energy generation by the year 2047.
Economic Survey Context
Released just one day prior, the Economic Survey outlined critical insights regarding India's path to long-term growth. The survey emphasized the necessity for deregulation and capital formation, projecting a GDP growth rate of between 6.3% and 6.8% for FY26.
Conclusion
While today's markets revealed a varied landscape, with some sectors benefiting from positive budgetary announcements, the overall sentiment remained cautious. Investors continue to weigh the implications of the budget against the backdrop of fiscal concerns and global economic uncertainties. As the day unfolds, stakeholders will keenly monitor these developments to navigate their investment strategies effectively.