Budget 2025: Here are five key takeaways for Indian stock market investors | Stock Market News

The benchmark indices, Sensex and Nifty 50, ended largely unchanged amid significant volatility following Finance Minister Nirmala Sitharaman’s Budget speech.

Investors closely monitored key sectors such as insurance, FMCG, real estate, power, railways, and defense due to the Budget’s impact on the stock market. The Sensex inched up by 5.39 points (0.01%) to close at 77,505.96, while the Nifty 50 dipped 26.25 points (0.11%) to settle at 23,482.15 on Saturday after experiencing sharp fluctuations.

Among sectoral indices, Nifty FMCG, Nifty Realty, Nifty Media, and Nifty Auto saw gains, whereas Nifty PSU Bank, Nifty Metals, Nifty Pharma, and Nifty Oil & Gas declined.

“The market has responded to the Union budget with a mixed view, primarily due to the modest 10% YoY increase in capex for FY26, falling short of expectations. Sectors like railways, defense, and infra are affected on which the market relies for the performance, dampening the sentiment. On the other hand, consumption-based sectors, which are expected to benefit the most, had a low effect on the broad market due to their modest market mix position. However, the market will begin to factor in the broader benefits to the economy and corporations over the course of the year due to a rapid increase in disposable income and boost in ease in business,” said Vinod Nair, Head of Research, Geojit Financial Services.

Here are five key takeaways for Indian stock market investors from Union Budget 2025 –

Agriculture

The government revealed plans to provide credit support to more than 1.7 crore farmers and launched a six-year initiative for self-reliance in pulse production. Additionally, the Finance Minister introduced a National Mission focused on high-yielding seeds, featuring over 100 climate-resistant varieties. Following these announcements, Kaveri Seeds’ stock jumped 7% after an initial 12% surge, while Godrej Agrovet shares also saw gains.

Footwear

Footwear stocks experienced a significant rally following the budget announcements, as the minister introduced a specialized scheme for India’s footwear and leather industry. The initiative is expected to create 22 lakh jobs, attract ₹4 lakh crore in investments, and drive ₹1.1 lakh crore in exports.

Mirza International shares surged 20% following the announcement, driven by its strong reliance on export revenue. Meanwhile, Bata India shares closed with a 6.5% gain, and Liberty Shoes saw a 7% increase.

While these stocks outperformed, there were also significant laggards following the Budget announcements.

Consumption

The income tax announcements triggered a surge in consumption-focused stocks, with companies like Radico Khaitan, Trent, and Blue Star gaining as much as 10% during the session. The Nifty FMCG index recorded its largest single-day jump in seven months. Trent, which had been the worst-performing Nifty 50 stock in January, emerged as the top gainer on the index.

EV

Auto stocks soared on February 1 following the Union Budget 2025, which introduced initiatives to boost electric vehicle (EV) adoption and expand infrastructure. Finance Minister Nirmala Sitharaman unveiled various measures to develop an ecosystem for solar PV cells and EV batteries. The announcements were well received by investors, leading to gains across major auto stocks.

Maruti Suzuki surged over 6% as the Budget’s emphasis is expected to benefit the company ahead of its first electric vehicle launch in 2025. Meanwhile, Mahindra & Mahindra, the best-performing Nifty 50 auto stock of 2024, gained more than 2%, driven by incentives for domestic battery production.

Railways

Railway stocks such as IRFC, RVNL, and IRCON declined by up to 10% following the Budget announcement, which kept the Railways’ capital expenditure unchanged at ₹2.51 lakh crore. These stocks had surged in recent days on expectations of a higher allocation. Prior to the renewed sell-off on Saturday, most railway stocks were rebounding after experiencing a 35% to 45% drop from their 2024 highs.