Published 16:45 IST, February 1st 2025
FM Sitharaman Big Bang Tax Reforms; Why Are Nifty And Sensex Flat?
The Indian stock markets opened positively on Saturday as Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26, but ended the day in the red.

Despite the unusual occurrence of Indian stock markets being open on a Saturday, benchmark indices began the day with optimism as Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26. The BSE Sensex opened over 100 points higher at 77,637.01, and the NSE Nifty 50 surpassed the 23,500 mark. However, as the Budget speech progressed, market enthusiasm waned, and indices slipped into red territory by the end of the day.
Market Movements Post-Budget
The downturn came as a surprise to many, especially given the significant tax reliefs announced for the salaried class and taxpayers. Nevertheless, the BSE Sensex concluded the session marginally down, losing 0.09% to close at 80,429, while the Nifty 50 dropped 0.12% to 24,479.
Railway Stocks Take a Hit
A notable fallout from the Budget was observed in railway stocks. Shares of major players such as IRFC, RVNL, IRCTC, Titagarh, RailTel, RITES, Jupiter Wagons, IRCON International, BEML, Texmaco Rail, and Concor plummeted up to 8%.
Expert Insights: Divergence in Sectoral Reactions
Sugandha Sachdeva, Founder of SS WealthStreet, noted, “Markets closed on almost a flat note post-Budget 2025, reflecting a muted overall reaction as it absorbed key budgetary announcements. While the budget delivered several growth-oriented measures, the absence of any major surprises kept market volatility in check.”
She pointed out a sectoral divergence, with consumption-driven sectors like realty, FMCG, auto, tourism, and agriculture seeing rallies due to tax concessions aimed at boosting domestic demand. In contrast, capital goods, defense, oil exploration, and railways faced corrections.
Preeti Zende, Chief of Apana Dhan Financial Services, advised investors to maintain a long-term perspective amid current market volatility. “There is a good move or a good kind of sentiment there in the market, so even if today you are seeing the volatility, make sure that you're sticking with your long-term investment,” she emphasized, suggesting that tax rebates could inject significant liquidity into the market, potentially triggering a bull run.
Market Experts Ajay Bagga said, “Overall: Market was positive on control of Fiscal deficit, but was disappointed by Capex spend being close to Fy2025 Budgeted number and FY2025 Revised estimate showing Rs 1 lakh crore of lesser capex spend. Personal income tax relief with lower slabs and no tax up to Rs 12 lakhs was seen as very positive for FMCG, QSR, Auto , and Retail stocks and these rallied. Infrastructure went down. Now the market will look tothe Feb 7th RBI policy for a rate cut relief and monetary stimulus boost to the economy."
Looking Ahead: Global and Domestic Factors
With the budget now unveiled, investor focus will shift to the upcoming RBI policy meeting on February 7, where a potential rate cut could bolster market stability. On the global stage, uncertainties loom with the Trump administration’s planned tariffs on imports from Mexico, Canada, and China, which could add to market complexities in the coming weeks.
Updated 11:53 IST, February 2nd 2025