Introduction: Budget 2025 and Stock Market Expectations
India’s Union Budget is very important for the country’s economy and stock market every year. On February 1, 2025, Finance Minister Nirmala Sitharaman presented her eighth budget, which had a great impact on major stock market indices like Sensex and Nifty. This article will explain the highlights of the 2025 budget and its impact on Sensex, Nifty and different sectors in easy Hindi. This information is based on new web sources and special attention has been paid to correct information. Let’s know how Budget 2025 affected the Indian stock market.
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Key announcements of Budget 2025
In Budget 2025, the government emphasized on increasing the spending capacity of the people. The biggest announcement was that under the new tax system, there will be no income tax on annual income up to Rs 12 lakh. The limit increased to Rs 12.75 lakh with a standard deduction of Rs 75,000 for salaried employees. Apart from this, changes were made in the tax slabs, which will leave more money with the middle class, which will promote both spending and savings.
The government also launched ‘PM Dhan-Dhanya Krishi Yojana’. This scheme will help 1.7 crore farmers in 100 districts, where crop yield is low, modern farming facilities are less and credit facilities are also less. This led to a surge in the shares of agriculture sector companies.
Sensex and Nifty performance
The stock market witnessed volatility on the day of Budget 2025. The BSE Sensex closed 5.39 points higher at 77,505.96, while the NSE Nifty fell 26.25 points to 23,482.15. The market started well, but volatility increased after the budget speech.
Experts believe that this market reaction was natural, as investors expected a very big increase in capital expenditure (capex), but it was limited to just Rs 11.2 lakh crore. This marginal increase disappointed sectors like railways, defense and infrastructure, causing stocks of these sectors to fall by 5-9%.
Consumption sector boom
Consumption-related sectors, such as FMCG (daily use goods), auto and real estate, saw a boom due to tax relief in the budget and schemes to boost the rural economy. The Nifty FMCG index rose 4.25% and consumer durables rose 2.39%. Companies like ITC, Hindustan Unilever, Maruti Suzuki and Zomato performed well, with Zomato’s stock rising 15 points. In contrast, stocks like Texmaco Rail, RVNL and Bharat Electronics fell 8-9% due to no major announcements in sectors like railways and defense.
Emphasis on agriculture and rural economy
The agriculture sector was given special importance in Budget 2025. Steps were taken to improve 100 districts with low productivity under the PM Dhan-Dhanya Krishi Yojana. Apart from this, the loan limit of Kisan Credit Card (KCC) was increased from Rs 3 lakh to Rs 5 lakh, which will benefit 7.7 crore farmers, fishermen and dairy farmers. Following this announcement, shares of Kaveri Seed Company rose 13.49% to Rs 1,020.70, Mangalam Seeds rose 7.09% to Rs 222 and Nath Bio-Gene rose 5.77% to Rs 178.60. This is a good sign for investors in the agriculture sector.
Long-term impact of the budget
Experts believe that the long-term impact of Budget 2025 will be positive, especially for consumption-based companies. Tax relief will increase the purchasing power of the middle class, leading to demand in sectors such as FMCG, auto and retail. However, a marginal increase in capital expenditure led to disappointment in the infrastructure and defence sectors.
Analysts say that if the Reserve Bank of India (RBI) cuts interest rates by 25 basis points in February, the market may gain further momentum. From a long-term perspective, the Indian stock market remains positive, but GDP growth of 7-8% is a must.
Strategy for investors
After Budget 2025, investors should remain cautious and focus on consumption-based sectors. Experts have advised investing in companies like ICICI Bank, Sun Pharma, Maruti Suzuki and Zomato. The level of 23,300 is an important support for the Nifty, and if it crosses the level of 23,500-23,600, it can go up to 24,000. Investors should take a long-term view and invest in strong companies by taking advantage of market volatility.
Conclusion
Budget 2025 has given mixed signals to the Indian stock market. The boost in the consumption sector and stimulus in the agriculture sector are positive, while the reduction in capital expenditure led to disappointment in some sectors. Sensex and Nifty showed stability on the budget day, but the impact of RBI policies and global economic conditions will be important in the future. Investors should remain cautious and focus on the consumption and agriculture sectors, as these are showing strong prospects for long-term growth.
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Frequently Asked Questions (FAQs)
- How did Budget 2025 impact the Sensex and Nifty?
- The Sensex closed marginally higher at 77,505.96, while the Nifty fell 26.25 points to 23,482.15.
- Which sectors got a boost in Budget 2025?
- FMCG, auto, real estate and agriculture sectors got a boost from tax relief and schemes.
- Why did agriculture sector stocks rise?
- The PM Dhan-Dhanya Krishi Yojana and the increase in the Kisan Credit Card limit led to a surge in stocks of agriculture companies.
- Did Budget 2025 boost capital expenditure?
- Capital expenditure increased only marginally, limited to Rs 11.2 lakh crore, leading to disappointment in the railways and defense sectors.
- Which stocks should investors focus on?
- Experts are advising investments in consumption-based stocks such as Zomato, Maruti, ITC and Sun Pharma.
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