Benchmark indices Sensex and Nifty closed nearly unchanged in a special trading session on Saturday, as investors found little to cheer in Finance Minister Nirmala Sitharaman’s Union Budget 2025-26 for retail investors and the broader market.
Despite market volatility, buying in consumption-driven sectors helped offset losses after the Finance Minister exempted annual income up to ₹12 lakh from income tax and revamped tax slabs.
Market Performance
Sensex rose 5.39 points or 0.01% to close at 77,505.96, fluctuating 892.58 points between a high of 77,899.05 and a low of 77,006.47.
Nifty declined 26.25 points or 0.11%, closing at 23,482.15, after touching an intra-day high of 23,632.45 and a low of 23,318.30.
Mixed Market Sentiment
According to Vinod Nair, Head of Research at Geojit Financial Services, the market reacted cautiously due to a modest 10% year-on-year increase in capital expenditure (capex) for FY26, falling short of expectations. He noted that sectors like railways, defense, and infrastructure, which were expected to benefit, saw limited gains, dampening overall sentiment.
However, consumer durables, FMCG, and auto stocks witnessed strong buying interest. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, highlighted that the income tax relief for the middle class is expected to boost consumption, benefiting these sectors.
Sectoral Impact & Stock Performance
Top Gainers: Zomato (up 7%), Maruti, ITC Hotels, Mahindra & Mahindra, Asian Paints, Titan, IndusInd Bank.
Top Losers: Power Grid, Larsen & Toubro, NTPC, UltraTech Cement, HCL Tech, Tech Mahindra, Infosys, Adani Ports.
Key Budget Takeaways
Income tax exemption for income up to ₹12 lakh.
No changes in Securities Transaction Tax (STT) or capital gains tax.
Reforms in the insurance sector, MSME support, and enhanced fiscal backing for welfare measures.
Fiscal deficit projected to decline to 4.4% of GDP in FY26 from 4.8% in the current fiscal year.
Market experts remain cautiously optimistic, expecting the tax relief to boost consumption and drive economic growth. However, investors await more concrete measures to stimulate corporate growth and capital markets.
