Indian equity markets opened marginally higher on Saturday, the Union Budget day, as investors remained cautious while awaiting Finance Minister’s announcements amid mixed global cues and recent selling by foreign investors.
The Sensex opened higher at 77,637.01 compared to its previous close of 77,500.57 and is currently trading at 77,635.33, up by 134.76 points or 0.17 per cent. Similarly, the Nifty opened at 23,528.60 against its previous close of 23,508.40 and is now at 23,544.90, gaining 36.50 points or 0.16 per cent at 9.40 am.
- Read also: Stock Market Live Updates 1 February 2025: Budget day: Markets open flat
“On the Budget day the market reactions will be quick in response to Budget announcements. A major expectation from the Budget is a cut in personal income tax to provide relief to the middle class and boost consumption, thereby facilitating growth recovery,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The market sentiment was partly influenced by the Economic Survey 2025 presented yesterday, which projected India’s GDP growth for FY26 at 6.3-6.8 per cent. The survey highlighted positive indicators including a drop in unemployment rate to 3.2 per cent in 2022-23 and stable gross FDI inflows.
“Today, on the first day of Expiry and ahead of the Union Budget, the market climbed and closed above the level of 23500, which is a positive sign,” said Shrikant Chouhan, Head Equity Research at Kotak Securities, noting increased buying interest in budget-sensitive sectors like Defense, Railways, Infrastructure, and Realty.
Among individual stocks, ITC Hotels led the gains on NSE, rising 3.06 per cent, followed by IndusInd Bank at 2.86 per cent. Other major gainers included Mahindra & Mahindra (+1.94 per cent), Bharat Electronics Limited (+1.88 per cent), and UltraTech Cement (+1.56 per cent). On the flip side, Hero MotoCorp declined 1.11 per cent, followed by Dr. Reddy’s (-1.10 per cent), Shriram Finance (-0.70 per cent), Wipro (-0.69 per cent), and Grasim (-0.67 per cent).
The market volatility index, India VIX, showed signs of easing, trading at 16.24 after falling nearly 6.57 per cent in the previous session, indicating reduced anxiety among investors ahead of the budget announcement.
Foreign institutional investors (FIIs) remained net sellers on January 31, offloading equities worth Rs 1,188.99 crore, while domestic institutional investors (DIIs) bought shares worth Rs 2,232.22 crore.
“The market will be looking for growth stimulating measures; not market-related taxation reliefs like changes in the capital gains taxation. The market response to the Budget will not last more than a few days,” added Vijayakumar, emphasizing that long-term market direction would depend on growth and earnings recovery trends.
Technical analysts suggest key support levels for Nifty at 23,400, 23,300, and 23,200, while resistance levels are seen at 23,600, 23,700, and 23,800. For Bank Nifty, support levels are placed at 49,300, 49,000, and 48,800, with resistance at 49,700, 50,000, and 50,300.
“Traders need to remain cautious ahead of the Union Budget, as high volatility is expected. However, buying on dips can be considered as long as the Nifty index holds above the 23,200 mark,” advised Hardik Matalia, Derivative Analyst at Choice Broking.
- Read also: Budget 2025 Live Updates: Markets open flat on Budget day
Market experts anticipate this year’s budget to focus on core capex investment in sectors such as infrastructure, renewable energy, defense, manufacturing, and technology, which could potentially influence market sentiment and specific stock performances in these sectors.
