Markets open higher ahead of Budget presentation

Nirmala Sitharaman’s Union Budget 2025 Presentation stirs Sensex and Nifty rally ahead, with market reactions expected to be quick and short-lived.

Benchmark indices Sensex and Nifty rallied in opening trade on Saturday (February 1, 2025) ahead of the Union Budget presentation.

The 30-share BSE benchmark Sensex climbed 136.44 points to 77,637.01 in opening trade. The NSE Nifty went up by 20.2 points to 23,528.60.

From the 30-share blue-chip pack, ITC Hotels, IndusInd Bank, Mahindra & Mahindra, Sun Pharma, UltraTech Cement and NTPC were among the biggest gainers.

Titan, Kotak Mahindra Bank, Nestle, Asian Paints, HCL Tech and ICICI Bank were among the laggards.

"On the Budget day, the market reactions will be quick in response to Budget announcements. A major expectation from the Budget is a cut in personal income tax to provide relief to the middle class and boost consumption, thereby facilitating growth recovery. The extent of the tax relief remains to be seen. The fact is that there is no fiscal space for big relief.

"The market will be looking for growth stimulating measures; not market-related taxation reliefs like changes in the capital gains taxation," V.K. Vijayakumar, chief investment strategist, Geojit Financial Services, said.

The market response to the Budget will not last more than a few days. Trends in growth and earnings recovery will dictate the medium to long-term market direction, he added.