The stock market closed in the red after trading ended on Monday, February 3, 2025. Oil & Gas, Metals, and FMCG stocks fell the most. The benchmark BSE Sensex closed down in the red by 319.22 points or 0.41%, reaching 77,186.74. The broader NSE Nifty closed 121.10 points down or 0.52% in the red, reaching 23,361.05.
This comes after the Union Budget 2025, the second full budget of Modi 3.0, was presented by finance minister Nirmala Sitharaman in Parliament at 11 am on Saturday, February 1, 2025, marking her eighth consecutive presentation of a Union Budget.
The market was also open that day despite it being a Saturday to give it enough time to react to the budgetary announcements.
Key announcements included major tax reforms such as zero income tax for those earning below ₹12.75 lakh per annum, enhanced credit guarantee for Micro, Small and Medium Enterprises (MSMEs) with customised credit cards, exemption on custom duty for 35 additional capital goods for electric vehicles (EVs), A national framework to be formulated for promoting Global Capability Centres (GCCs), and a ₹500 crore allocation for a Centre of Excellence in Artificial Intelligence, among others.
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Why did markets fall on the day after the Budget?
One of the primary reasons why the stock market fell was due to US President Donald Trump imposing a 25% tariff on Canada and Mexico, along with a 10% tariff on China.
As a result, even the rupee fell to hit an all-time low of 87.29 to the US dollar as investors increasingly feared an upcoming trade war.
Foreign investors have also been net sellers lately. On February 1, they sold ₹1,327.09 crore worth of Indian equities, according to NSE data.
Another reason could be caution ahead of the upcoming Reserve Bank of India (RBI) Monetary Policy Committee (MPC) meeting which will be held from February 5-7.
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Top losers
Among the 30 Sensex stocks, Larsen & Toubro Ltd fell the most by 4.64%, closing at ₹3,287.25. This was followed by Tata Motors Ltd, which fell 2.64%, trading at ₹687.45, and Hindustan Unilever Ltd, which fell 2.62%, trading at ₹2,441.40.
In terms of sectors, the Nifty Oil & Gas Index fell the most by 2.22%, reaching 10,206.25, followed by Nifty Metal, which fell 1.73%, closing at 8,155.15, and Nifty FMCG, which fell 1.67%, reaching 57,419.55.
Top gainers
Among the 30 Sensex stocks, Bajaj Finance Ltd rose the most by 5.28%, closing at ₹8,423.80. This was followed by Mahindra & Mahindra Ltd, which fell 2.96%, closing at ₹3,171.35, and Bajaj Finserv Ltd, which rose 2.30%, closing at ₹1794.45.
Among the Nifty sectoral indices, Nifty IT rose the most by 0.68%, closing at 42,314.25, followed by Nifty Consumer Durables, which rose 0.55%, closing at 38,918.30, and Nifty Financial Services Ex-Bank, which rose 0.47%, closing at 25,190.50.
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How did the stock market perform on Budget day?
The stock market went into the red after opening, went green when Sitharaman began her budget speech, and closed flat after the trading session ended.
Oil & gas, FMCG, and PSU bank stocks fell the most upon open.
At 9:20 am IST, the Sensex was down by 63.06 points or 0.08%, reaching 77,437.51. The Nifty opened 19.30 points down or 0.08% in the red, reaching 23,489.10.
After the speech began at 11 am IST, the Sensex was up 254.25 points or 0.33% in the green, reaching 77,754.82, while the Nifty was up 82.55 points or 0.35% in the green, reaching 23,590.95.
At that time, real estate, media, and mid and small cap financial services stocks rose the most.
The markets then closed flat. The Sensex closed 5.39 points or 0.01% in the green, at 77,505.96, while the Nifty closed 26.25 points or 0.11% in the red at 23,482.15.
Real estate, FMCG, and consumer durables rose the most while PSU banks, IT, and oil & gas stocks fell the most.
