Stock Market Rises Ahead of Economic Survey and Union Budget
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Synopsis
As the nation readies for the Economic Survey and Union Budget 2025-26, domestic benchmark indices opened higher on Friday, reflecting investor optimism. The Sensex rose nearly 184 points, while the Nifty gained 74 points in early trading.
Key Takeaways
- Domestic indices opened positively amidst Budget anticipation.
- FIIs sold equities worth ₹4,582.95 crore on January 30.
- Key sectors to watch include railways, infrastructure, and EVs.
- Market volatility expected ahead of the Union Budget.
- Economic Survey insights supervised by Chief Economic Advisor.
Mumbai, Jan 31 (NationPress) As the country prepares for the Economic Survey and the Union Budget 2025-26, the domestic benchmark indices opened on a positive note on Friday. There was a general sense of optimism among investors, looking for possible triggers in the forthcoming Budget.
The Sensex was up nearly 184 points, translating to a 0.24 percent increase, reaching 76,935 around 9:31 a.m., while the Nifty gained 74 points or 0.32 percent, sitting at 23,323 in early trading.
Both the Sensex and Nifty have enjoyed a three-day winning run this week, despite foreign institutional investors (FIIs) unwinding their long positions.
Stocks like Larsen & Toubro, Infosys, Titan, Tata Consumer Products, and Maruti Suzuki India contributed positively to the Nifty 50 index, whereas Bharti Airtel, ICICI Bank, HDFC Bank, NTPC, and Coal India had a negative impact.
On the NSE, six sectors advanced while six declined out of a total of twelve. The NSE Nifty Metal sector experienced the largest decline, whereas the NSE Nifty IT sector saw the most significant gains.
The BSE Midcap and Smallcap indices recorded increases of 0.31 percent and 0.295 percent, respectively.
Market analysts anticipate some volatility surrounding the Union Budget announcements, with key sectors to keep an eye on including railways, infrastructure, fertilisers, textiles, and electric vehicles (EV).
Akshay Chinchalkar, Head of Research at Axis Securities, noted that the Nifty experienced a volatile trading session on Thursday, with a drop in the afternoon followed by a recovery in the last hour.
“It’s important to note that the December close was 23,644, so if we don't manage to close above this figure today, it will mark the first time since September 2001 that the Nifty has recorded four consecutive months of decline,” he stated.
On January 30, FIIs continued to be net sellers, offloading equities valued at ₹4,582.95 crore, while domestic institutional investors purchased equities worth ₹2,165.89 crore on the same day.
Given the current volatility, traders are advised to exercise caution, implement strict stop-loss measures, and refrain from holding positions overnight, as heightened volatility is anticipated ahead of the Union Budget 2025, according to Hardik Matalia of Choice Broking.
The Economic Survey is compiled under the guidance of Chief Economic Advisor V. Anantha Nageswaran, providing insights into the economy as prepared by the economic division of the Department of Economic Affairs within the Ministry of Finance.
The Union Budget is set to be presented by Finance Minister Nirmala Sitharaman on February 1.
