In the volatile session on Budget-day, the Indian equity indices ended on a flat note on February 1 despite some major announcements by the Finance Minister Nirmala Sitharaman in her Union Budget speech with income tax relief package.
Union Finance Minister Nirmala Sitharaman delivered her eight consecutive Union Budget, introducing some tax relief to the lower and middle class with major boost to he consumption with fiscal deficit target of 4.4 percent in FY26.
At close, the Sensex was up 5.39 points or 0.01 percent at 77,505.96, and the Nifty was down 26.25 points or 0.11 percent at 23,482.15.
L&T, Bharat Electronics, Power Grid Corp, Grasim Industries, Cipla are among the top losers on the Nifty, while gainers included Trent, Maruti Suzuki, Tata Consumer, Eicher Motors, Bajaj Auto.
Among sectors, Consumer Durables index was up 3 percent, realty index added 3.3 percent, auto index jumped 1.9 percent, Media index up 2 percent and FMCG index rose 3 percent. On the other hand, capital goods, power, PSU indices shed 2-3 percent and metal, IT, energy down 1-2 percent.
BSE midcap index shed 0.5 percent, while smallcap index added 0.3 percent.
Outlook for February 3
Rupak De, Senior Technical Analyst at LKP Securities
| Index | Prices | Change | Change% |
|---|---|---|---|
| Sensex | 80,710.76 | -7.25 | -0.01% |
| Nifty 50 | 24,741.00 | 6.70 | +0.03% |
| Nifty Bank | 54,114.55 | 39.10 | +0.07% |
| Biggest Gainer | Prices | Change | Change% |
|---|---|---|---|
| Eicher Motors | 6,580.50 | 155.50 | +2.42% |
| Biggest Loser | Prices | Change | Change% |
|---|---|---|---|
| ITC | 407.35 | -8.55 | -2.06% |
| Best Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty Auto | 26320.60 | 325.75 | +1.25% |
| Worst Sector | Prices | Change | Change% |
|---|---|---|---|
| Nifty IT | 34635.80 | -507.30 | -1.44% |
The Nifty has witnessed a roller-coaster ride during the Budget session. On the daily chart, a small-bodied candle has formed, indicating indecision. Nifty has support at 23,280, and as long as it remains above this level, the trend might stay positive.
On the higher end, the index could move towards 23,700–24,000 in the short term. However, a fall below 23,280 might trigger panic in the market.
Ajit Mishra – SVP, Research, Religare Broking
Markets showed volatility during the special trading session for the Union Budget and ultimately closed nearly flat, taking a pause after the recent rally. Following a subdued start, the Nifty gained early momentum but struggled to break past the key resistance at the long-term 200-day exponential moving average (DEMA), closing at 23,482.15. Sector-wise, the consumption-driven sectors such as FMCG, auto, and real estate saw decent buying interest, largely in response to the budget's tax relief measures. However, stocks in defense, energy, and infrastructure showed signs of disappointment. Broader indices followed a mixed trend, with no clear direction.
The impact of the Union Budget could linger in the next session, particularly in the consumption sectors. The Nifty may remain around its current levels as market participants await the next decisive move above the critical hurdle of 200 DEMA i.e. 22.620 level. Additionally, with the earnings season set to take center stage again, traders should focus on stock selection and align their positions accordingly.
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