Key Points
Nifty 50 index closes marginally down at 23,482.15
FMCG and Realty sectors surge over 3%
Budget focuses on consumption-led growth
Market experts remain optimistic about long-term economic prospects
The Nifty 50 index ended at 23,482.15, down by 26.25 points (-0.11 per cent), while the BSE Sensex settled at 77,505.96, gaining a marginal 5.39 points (+0.01 per cent).
Market experts noted that the Budget focused on consumption-led growth, which drove strong buying in certain sectors. The FMCG (Fast-Moving Consumer Goods) and Realty sectors surged more than 3 per cent on the National Stock Exchange, reflecting positive investor sentiment. However, sectors such as IT, metals, banking, and pharmaceuticals faced selling pressure by the closing of the session.
Commenting on the Budget's impact on stock markets, Akshay Chinchalkar, Head of Research at Axis Securities, said "It's a consumption-led Budget, and that is reflected in the performance of the FMCG sector. The personal tax announcements will leave more money in the hands of middle-class consumers, leading to higher spending. However, the revenue loss from these tax benefits has to be compensated from other areas, which could be causing the market's volatility."
In the Nifty 50 list 22 stocks closed with a green while 30 stocks closed with a decline.
Nilesh Shah, MD of Kotak Mahindra Asset Management Company, shared a broader perspective "This Budget has delivered on the Triveni Sangam expectations, meaning it has increased capital expenditure (CapEx), boosted consumption, and contained the fiscal deficit. These were the three key aspects the market was looking for. The shift in market investments may move from infrastructure and CapEx towards consumption. However, for long-term investors, infrastructure and investment-oriented sectors still hold promise."
Despite the flat closing, market analysts believe the Budget's emphasis on consumption and fiscal discipline could provide long-term support to economic growth.
However, it will depend on how investors adjust their portfolios to balance between consumption-driven stocks and long-term investment sectors.
