Indian stock markets ended flat on Budget day after a highly volatile trading session, with FMCG and Realty stocks emerging as notable gainers. The session saw sharp movements during the Union Budget speech by Finance Minister Nirmala Sitharaman.
The Nifty 50 index closed at 23,482.15, down by 26.25 points (-0.11 per cent), while the BSE Sensex settled at 77,505.96, gaining a marginal 5.39 points (+0.01 per cent).
Market experts attributed the volatility to a Budget focused on consumption-led growth. FMCG and Realty sectors surged more than 3 per cent on the National Stock Exchange, reflecting positive investor sentiment. Meanwhile, IT, metals, banking, and pharmaceutical stocks faced selling pressure by the session’s end.
Akshay Chinchalkar, Head of Research at Axis Securities, highlighted the positive impact of tax measures. “It’s a consumption-led Budget, and that is reflected in the FMCG sector’s performance. The personal tax announcements will leave more money in the hands of middle-class consumers, boosting spending. However, concerns about revenue loss from these tax benefits may be contributing to market volatility,” Chinchalkar explained.
Out of the Nifty 50 stocks, 22 ended in the green, while 30 declined.
Nilesh Shah, MD of Kotak Mahindra Asset Management Company, offered a broader perspective on the Budget’s impact. “This Budget delivered on the Triveni Sangam expectations — increasing capital expenditure, boosting consumption, and containing the fiscal deficit. While market investments may shift toward consumption, infrastructure and CapEx-oriented sectors still hold promise for long-term investors,” Shah remarked.
Despite the flat closing, analysts remain optimistic about the Budget’s emphasis on consumption and fiscal discipline, predicting long-term support for economic growth. Investors are expected to rebalance portfolios between consumption-driven stocks and sectors geared toward long-term investments.
(Inputs from ANI)