Indian equity markets erased early gains and slipped into the red after the government revised its capital expenditure (capex) estimate for FY25 lower than initially projected. At 12:00 noon, the Sensex fell 350.20 points or 0.45 percent to 77,150.37, while the Nifty declined 101.15 points or 0.43 percent to 23,407.25. The market breadth turned mixed, with 1,685 stocks advancing and 1,660 declining.
Finance Minister Nirmala Sitharaman, in her Budget 2025 speech, announced a revised capex of Rs 10.18 lakh crore for FY25, lower than the earlier projection of Rs 11.11 lakh crore. The downward revision weighed on investor sentiment, triggering selling pressure in key stocks.
Among Nifty gainers, Trent remained the top performer, rising 5.63 percent to Rs 6,077.25, followed by Maruti Suzuki (up 4.79 percent at Rs 12,899.8) and Britannia (up 4.22 percent at Rs 5,346). Hindustan Unilever and ITC also traded in the green, up 4.05 percent and 3.77 percent, respectively.
On the downside, SBI Life led the losses, falling 7.32 percent to Rs 1,375, followed by HDFC Life (down 5.78 percent at Rs 601.15). BEL, Shriram Finance and Bajaj Finserv also saw notable declines, shedding between 4 to 5 percent.
The market, which had rallied earlier in the day, saw a sharp reversal as investors reacted to the revised capex numbers. Volatility is expected to remain elevated through the session as Budget announcements unfold.
While bullish momentum carried the market into the Budget session earlier today, the derivatives positioning suggests FIIs remain cautious, with net short positions still dominant in index futures. Traders anticipate heightened volatility through the session as Budget announcements unfold.
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