Weekly Market Recap: Nifty, Sensex Posted Mixed Performance During Budget 2025 Week Ended Feb 1

The 6-day week ended February 1, 2025, saw a mixed reaction in the Indian securities market. The benchmark indices NSE Nifty 50 and BSE Sensex started the week with steep selling pressure, with a fall of over 1% on January 27, 2025, respectively. For the consecutive 4 days, Bulls took over the bear and the market rebounded and gained over 2%. The week closed mixed on Union Budget 2025 day with Nifty 50 falling 0.11% to 23,482.15 and Sensex closing flat at 77,505.96 with a positive bias of 0.01%

Key Highlights of Union Budget 2025

On February 1, 2025, FM Nirmala Sitharaman presented her 8th consecutive budget speech. Below are key highlights of the speech

• The total receipts, excluding borrowings, are estimated at ₹34.96 lakh crore, while the total expenditure is projected at ₹50.65 lakh crore. Net tax receipts are expected to be ₹28.37 lakh crore. The fiscal deficit is anticipated to be 4.4% of GDP. Gross market borrowings are estimated at ₹14.82 lakh crore.
• A Makhana Board will be set up to enhance the production, processing, value addition, and marketing of makhana.
• A provision of ₹1.5 lakh crore has been proposed for 50-year interest-free loans to states for capital expenditure and reform incentives.
• Under the new tax regime, no personal income tax will be levied on incomes up to ₹12 lakh (which equals an average monthly income of ₹1 lakh, excluding special income like capital gains). For salaried taxpayers, this limit will be ₹12.75 lakh due to a standard deduction of ₹75,000. This new structure is expected to significantly lower taxes for the middle class, thereby increasing disposable income and encouraging household consumption, savings, and investment.

New Debutant on D-Street

On Jan 29, 2025, ITC Hotels Limited and Denta Water and Infra Solutions Limited debuted on BSE and NSE.

Major Q3FY25 Earnings This Week

• During Q3FY25, Coal India reported a slight decline of ₹434 crore or 1% in the total income to ₹37,923 crore as compared to ₹38,357 crore in Q3 FY24.
• TATA Steel posted a 36.37% YoY drop in consolidated net profit to ₹326.64 crore for Q3FY25, down from ₹513.37 crore in the same period last year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.