Sensex, Nifty 50 Decline on First Trading Day After Union Budget

Stock Market Today: Markets Plunge as Trading Opens Post-Budget on February 3, 2025

Stock Market Today: Sensex and Nifty Fall After Union Budget 2025

Market Opens in Red After Budget Day

The Indian stock market faced a sharp decline as trading began on Monday, February 3, 2025, marking the first trading session after the presentation of the Union Budget 2025.

Key Market Declines

• Sensex: Dropped by 680.06 points (0.88%), reaching 76,825.90 at 9:20 AM IST.
• Nifty 50: Opened 224.45 points lower (0.96%), trading at 23,257.70.

Sectors That Fell the Most

• Metal stocks
• Mid and small-cap IT & telecom stocks
• Real estate stocks

Expert Market Analysis

Akshay Chinchalkar, Head of Research at Axis Securities, stated, “Today is most likely going to be a gap-down opening due to the selloff in US equity futures and regional markets, including the Gift Nifty, after the tariff announcement.”

He further added, “Expect high volatility in February. Based on two decades of data, Nifty has historically shown the worst performance in February, averaging a 1% loss.”

Highlights of Union Budget 2025

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, was her eighth consecutive budget. The stock market remained open that Saturday to allow traders to react to the announcements.

Key Budget Announcements

• Zero income tax for individuals earning below ₹12.75 lakh per annum.
• Enhanced credit guarantee for MSMEs with customized credit cards.
• Custom duty exemption for 35 additional capital goods in the EV sector.
• National framework for Global Capability Centres (GCCs).
• ₹500 crore allocation for a Centre of Excellence in Artificial Intelligence.

Market Expert Views

Motilal Oswal, Group MD & CEO of Motilal Oswal Financial Services Ltd., said:

• Consumption-driven sectors like FMCG, auto, and footwear will likely benefit.
• Capex spending of ₹11.2 lakh crore is aligned with market expectations.
• MSME-focused manufacturing will positively impact several industries.

Biggest Losers in Sensex Stocks

Among the 30 Sensex stocks, only 8 remained in the green, while the rest declined. The top losers were:

• Larsen & Toubro Ltd – Down 3.22%, trading at ₹3,336.25.
• Tata Steel Ltd – Down 2.78%, trading at ₹129.25.
• ITC Hotels Ltd – Down 2.26%, trading at ₹168.50.

Sector-Wise Performance

All Nifty sectoral indices were in the red. The worst-performing indices were:

• Nifty Metal Index: Down 3.19%, reaching 8,034.10.
• Nifty Midsmall IT & Telecom: Down 2.38%, reaching 10,038.05.
• Nifty Realty: Down 2.07%, reaching 932.75.

How the Market Reacted on Budget Day

On February 1, 2025, the stock market had a mixed reaction:

• Initially, Sensex and Nifty fell after the opening.
• They turned positive when Finance Minister Sitharaman began her speech at 11 AM IST.
• Market closed flat by the end of the day.

Key Market Movements on Budget Day

Before speech (9:20 AM IST):

• Sensex down 63.06 points (0.08%) at 77,437.51.
• Nifty down 19.30 points (0.08%) at 23,489.10.

During speech (11:00 AM IST):

• Sensex up 254.25 points (0.33%) at 77,754.82.
• Nifty up 82.55 points (0.35%) at 23,590.95.

At market close:

• Sensex closed 5.39 points up (0.01%) at 77,505.96.
• Nifty closed 26.25 points down (0.11%) at 23,482.15.

Best & Worst Performing Sectors on Budget Day

Best Performing Sectors

• Real estate
• FMCG
• Consumer durables

Worst Performing Sectors

• PSU banks
• IT stocks
• Oil & gas stocks

Conclusion

The stock market reacted negatively on the first trading day after Budget 2025, with major indices falling sharply. Experts predict increased volatility throughout February. While some sectors like FMCG and real estate may benefit from budget policies, others, like metals and telecom, faced a downturn. Investors should stay cautious in the coming weeks as market trends unfold.