Taking Stock | Sensex, Nifty close higher for fourth straight session; all eyes on Budget 2025

markets

Indian markets closed higher for the fourth consecutive session on January 31, ahead of the crucial Union Budget on Saturday. Investor optimism grew after Prime Minister Narendra Modi invoked the Hindu goddess of wealth, signaling potential government measures to support consumption, particularly for the poor and middle class, in the upcoming budget.

At the close of trading, the Sensex rose by 0.97%, ending at 77,500 points, while the Nifty gained 1.11%, closing at 23,508.4 points. Over the past four sessions, both indices have surged by approximately 3%. Meanwhile, the broader markets saw even stronger gains, with the BSE MidCap and SmallCap indices climbing over 3.5% each.

Modi’s remarks, made a day before Finance Minister Nirmala Sitharaman’s budget announcement for the fiscal year starting April 1, have drawn significant attention, especially amid expectations of the slowest economic growth since the pandemic. Speculations are rife that Sitharaman may reduce personal income taxes and increase welfare for rural areas, as consumption remains subdued due to rising prices and stagnant wages.

In his speech, Modi emphasised that the budget would instill energy and confidence, propelling the nation towards its goal of becoming a developed country by 2047.

The recent rally, which followed a significant correction in January, saw investors capitalise on market dips despite mixed corporate earnings. Optimism surged ahead of the Union Budget and the RBI’s upcoming policy meeting. The rally gained further momentum after the RBI’s liquidity-boosting measures on January 27, fueling expectations of a rate cut in February.

Outlook for February 1

Prashanth Tapse, Senior VP (Research), Mehta Equities

Markets maintained the upward bias for the fourth straight session as benchmark indices notched up splendid gains ahead of the important Budget announcement with strong global cues too aiding the sentiment. Equity markets received a boost after the ECB cut interest rates by 25 bps, which also softened US bond yields. Traders will be focused on the Budget and steps the government will announce to boost the economy.

Index	Prices	Change	Change%
Sensex	75,273.45	1,205.00	+1.63%
Nifty 50	23,306.45	394.05	+1.72%
Nifty Bank	53,708.10	1,102.45	+2.10%

Nifty 50 23,306.45 394.05 (1.72%)

Wed, Mar 25, 2026

• 1D
• 5D
• 1M
• 3M
• 6M
• 1Y
• 2Y

Biggest Gainer	Prices	Change	Change%
Shriram Finance	956.00	52.40	+5.80%

Biggest Loser	Prices	Change	Change%
Tech Mahindra	1,408.50	-24.20	-1.69%

Best Sector	Prices	Change	Change%
Nifty PSU Bank	8581.05	223.50	+2.67%

Worst Sector	Prices	Change	Change%
Nifty IT	29671.30	22.40	+0.08%

Vinod Nair, Head of Research, Geojit Financial Services.

The Indian markets concluded on a positive note despite fluctuating between gains and losses. The fall in oil prices due to a rise in US inventories and an ease in US 10-year yield after the US Fed's hawkish view may decelerate FIIs outflow. The upcoming budget may be seen as an inflection point, which is likely to reverse the current bearish trend if the policies restore growth and consumption. As the long-term story is intact, investors are focusing on stocks and sectors where operational metrics and valuations are favourable.

Aditya Gaggar Director of Progressive Shares

The last day of the month belongs to the bulls as from the beginning itself, the Nifty index progressed towards the north and at regular intervals compounded its gains to close at 23,508.40 with gains of 258.90 points. All the sectors ended in green with Energy and FMCG being the major outperformers. Mid and Smallcap space advanced by 1.89% & 2.11% and outshined the Frontline Index.

With a strong bullish candle, the index has confirmed its Falling Wedge Formation breakout but with the Union Budget announcement tomorrow, there could be high volatility. The undertone will remain positive with the downside being protected at 23,400 while on the higher side, 23,740-23,860 will be considered as a strong resistance zone.

Sunil Damania, Chief Investment Officer, Mojopms

The Indian stock market’s wealth creation story has hit a roadblock, with many investors who thrived in 2024 now facing significant portfolio losses. As the Union Budget approaches, the critical expectation is to revive market sentiment. Recent budgets have seen increased taxation on the capital market—higher STT, capital gains taxes, taxation of dividend income in shareholders’ hands, and the removal of tax benefits on buybacks.

This year, it’s imperative for the Finance Minister to avoid introducing new taxes on investors. Instead, providing meaningful tax rebates to enhance consumer spending power could help revive the consumption cycle. Additionally, while higher capex allocations are welcome, the Budget should include clear quarterly timelines for actual spending. Without effective execution, increased allocations lose their impact. Finally, if achieving these goals requires a temporary relaxation of the fiscal deficit, it should be considered a necessary trade-off for long-term economic growth.