Mumbai, Feb 1 : The Indian stock market closed flat on Saturday, reflecting cautious investor sentiment as Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 in Parliament. While the markets swung between gains and losses throughout the day, attention remained focused on the government’s ambitious roadmap of Viksit Bharat @ 2047, a vision aimed at transforming India into a developed nation by its centenary of independence.
The BSE Sensex, after reaching a high of 77,899.05, closed at 77,505.96—just 5.39 points or 0.01 percent higher than its previous close. Meanwhile, the NSE Nifty ended the day at 23,482.15, down 26.25 points or 0.11 percent, after fluctuating between a high of 23,632.45 and a low of 23,318.30, inputs firm IANS.
Market experts noted heightened volatility, as reflected by a small-bodied candle on the Nifty’s daily chart, indicating uncertainty among investors. However, analysts believe that the long-term policies laid out in the Budget, especially those supporting infrastructure, innovation, and socio-economic development under the Viksit Bharat framework, could provide a stable foundation for sustained growth in the coming years.
Sectoral Performance Reflects Mixed Sentiment
The markets saw divergent reactions across sectors, with industries linked to domestic consumption and infrastructure showing gains, while others, particularly export-driven sectors, faced headwinds.
• The FMCG sector recorded a strong gain of 2.94 percent, as expectations of increased rural demand and consumption-focused initiatives boosted investor confidence.
• Consumer Durables and Auto sectors rose by 2.32 percent and 2.54 percent, respectively, supported by policies encouraging domestic manufacturing and electric vehicle growth.
• The Realty sector climbed 1.77 percent, driven by the Budget’s emphasis on affordable housing and infrastructure development.
On the other hand, the IT sector emerged as the biggest loser of the day, declining 1.02 percent due to global uncertainties and concerns over policy shifts affecting the sector. Other sectors, including Banking, Financial Services, Metal, Pharma, and Oil & Gas, also saw declines, reflecting near-term caution among investors.
Broader Market Dynamics
In the broader market, small-cap stocks outperformed their larger peers. The Nifty Smallcap100 index rose 0.41 percent, reflecting optimism in domestic, growth-oriented companies. However, the Nifty Midcap100 index slipped 0.42 percent, highlighting mixed sentiment in mid-tier companies.
Market Outlook in the Context of Viksit Bharat @ 2047
The government’s Viksit Bharat @ 2047 initiative emphasizes robust capital expenditure, technological advancement, and inclusive growth. These themes were echoed throughout the Budget, which laid out plans for increased investment in infrastructure, renewable energy, and rural development.
Analysts believe that if these policies are implemented effectively, they could drive sustained market growth over the long term. In the short term, however, the Nifty faces support at 23,280. A sustained move above this level could lead to an upward trend toward 23,700–24,000. On the downside, a break below 23,280 may result in a sell-off.
Adding to the market’s volatility, the India VIX surged 13.24 percent to close at 14.10 points, indicating heightened uncertainty.
While immediate reactions to the Budget remain mixed, the government’s long-term vision for a self-reliant, developed India is expected to steer the economy toward growth. Market participants are closely watching how these initiatives will unfold and impact key sectors in the coming quarters.
