Budget Blues and Boons: Market Reacts Mixedly to Financial Reform

Sensex and Nifty ended flat on a special Saturday trading session as the Union Budget brought mixed reactions. Highlighting consumption-boosting tax cuts yet underwhelming infrastructural investments, fluctuation dominated. Notable stock sector gains included consumer durables, despite the broader market's tempered enthusiasm.

The benchmark indices Sensex and Nifty ended a special Saturday trading session relatively flat, as the Union Budget seemed to offer little encouragement for retail investors and overall markets. Investors were particularly looking for incentives from Finance Minister Nirmala Sitharaman. However, the markets found stability as buying picked up in consumption-oriented sectors.

Sitharaman revealed tax reforms, including exemption for those earning up to Rs 12 lakh annually and updated tax slabs, which despite a lack of broader market impact, did buoy consumer durables and FMCG stocks. The markets were volatile, with Sensex witnessing marginal gains and the Nifty dipping slightly. Yet, these fluctuations fail to reflect the investor enthusiasm observed across consumer sectors due to anticipated rises in consumption.

Despite lacking securities or capital gains tax changes, experts viewed the budget as growth-centric, aiming to balance fiscal disciplines while pushing for innovation and economic expansion. International markets closed due to holidays, leaving the domestic market observed by global investors. As a result, select IPC stocks saw varied fortunes amid a backdrop of cautious optimism among traders evaluating the budget's impact.

(With inputs from agencies.)