Mumbai: In a promising start to the trading session on Friday, benchmark stock market indices surged ahead of the highly anticipated Budget 2025. Both the S&P BSE Sensex and NSE Nifty registered significant early gains, driven by strong performances from the auto and IT sectors. As of 9:25 AM, the Sensex rose 161.56 points to 76,921.37, while the Nifty gained 64.60 points, reaching 23,314.10.
Market analysts suggest that expectations surrounding the upcoming Budget, along with its actual announcements, will be pivotal in shaping the market’s direction in the short term. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized that a post-Budget rally is likely if the government delivers on growth-stimulating measures like cuts in personal income tax. However, he cautioned that such effects would likely be short-lived, with the long-term market trend determined by broader economic indicators such as GDP growth and corporate earnings.
Sector-wise, the auto and IT indices saw the strongest gains, while FMCG stocks also registered positive movements. However, the telecom and financial sectors faced some selling pressure. Leading the gainers, Tata Consumer Products jumped by 3.27%, followed by Titan Company, which saw a 2.82% rise. Other notable performers included Trent Limited, up 2.60%, and Larsen & Toubro, which added 2.48%. Bharat Electronics Limited (BEL) also posted a 2.08% increase.
On the downside, Bharti Airtel faced the steepest decline, shedding 3.34%, while Indian Hotels Company dropped by 1.99%. Financial stocks, including Bajaj Finserv, ICICI Bank, and Bajaj Finance, also experienced notable losses.
The broader markets mirrored the positive sentiment, with both the Nifty Smallcap 100 and Nifty Midcap 100 indices climbing 0.85% and 0.84%, respectively. However, rising volatility, indicated by a 1.65% increase in the India VIX, suggests that investors remain cautious ahead of the Budget announcements.
As the markets continue to react to quarterly earnings results, with good performance rewarded and poor results punished, volatility remains elevated, making it crucial for investors to keep a close watch on the macroeconomic indicators that will shape the market’s medium-to-long-term trends.
