Markets React to Union Budget: Gains and Gaps Presented by Sitharaman

After the Union Budget presentation, Sensex and Nifty showed volatility as investors found limited benefits. While there was relief for the middle class via income tax exemptions, benchmark indices declined before stabilizing. Key sectors lagged while notable companies showed gains, amidst continued fiscal consolidation plans by the government.

In the aftermath of the Union Budget presentation, India's benchmark indices—Sensex and Nifty—exhibited significant volatility, reflecting investor sentiment. Though the government provided tax relief to the middle class, encouraging consumption and growth, the markets saw little stimulus to drive immediate gains.

Initially, stock indices showed positive movement during Finance Minister Nirmala Sitharaman's Budget speech, but this optimism waned as the speech concluded. The BSE Sensex fell sharply by over 494 points, with the NSE Nifty also slipping. However, losses were pared as both indices stabilized in late trade.

Major laggards included blue-chip stocks such as Bajaj Finserv and UltraTech Cement, while companies like Zomato and Maruti emerged as gainers. Importantly, the Budget aimed at wealth distribution through tax relief while maintaining a projected fiscal deficit reduction, aligning with long-term economic consolidation strategies.