Indian Stock Markets Rally Ahead of Union Budget 2025-26

Indian stock markets soared for a fourth consecutive session, buoyed by optimism surrounding the upcoming Union Budget 2025-26. Nifty 50 and BSE Sensex posted significant gains as investors anticipate potential growth-stimulating measures. Experts emphasize the budget's short-term impact but underscore long-term influences of GDP and earnings growth.

For a fourth straight session, the Indian stock markets closed higher, driven by positive sentiment linked to the forthcoming Union Budget 2025-26. The Nifty 50 index rose by 258.90 points, or 1.11%, settling at 23,508.40, while the BSE Sensex increased by 740.76 points, up 0.97%, to close at 77,500.57.

Market analysts suggest that investor sentiment will hinge on budget announcements in the ensuing days, with expectations of growth-driven initiatives such as personal income tax cuts. Investors remain attentive to the economic survey presented in Parliament, showing projections of India's economic growth between 6.3% and 6.8% for FY26.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, observed that the market's reactions are becoming more volatile, with good earnings leading to rewards and poor results causing punitive effects. Investors are advised to watch for the impact of the budget, which is expected to be felt only in the short term. Long-term market trends will be shaped by GDP and earnings growth, and investors should focus on these macroeconomic indicators.

During Friday's session, sectors led by consumer durables, oil and gas, and power, among others, saw gains. Key performers included Tata Consumer and L&T, while Bharti Airtel and ICICI Bank faced declines.

(With inputs from agencies.)