Union Budget 2025: Market ends flat, Sensex closes at 77,505.96; Nifty dips below 23,500 – The Times of India

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, ended flat on Saturday after opening in the green during the special Budget 2025 trading session. Markets initially reacted positively, but volatility set in after finance minister Nirmala Sitharaman concluded her Budget speech.
The 30-share BSE Sensex settled just 5.39 points higher at 77,505.96, while the NSE Nifty dipped 26.25 points to 23,482.15.During late afternoon trade, the Sensex declined 494.1 points to 77,006.47, while Nifty fell 162.35 points to 23,346.05.
Among the major laggards from the Sensex pack were Bajaj Finserv, UltraTech Cement, Larsen & Toubro, Power Grid, Tata Steel, and State Bank of India, while the top gainers included Zomato, Maruti, ITC, Mahindra & Mahindra, and Titan.
At market opening, the Sensex climbed 136.44 points to 77,637.01, while the NSE Nifty rose 20.2 points to 23,528.60. At 12:36 PM, BSE Sensex was trading at 77,072.56, down 428.01 points or 0.55%. Nifty50 was at 23,361.75, down 146.65 points or 0.62%.
Presenting her eighth consecutive Budget, Sitharaman announced key tax reliefs for the middle class, exempting annual income up to Rs 12 lakh from taxation and restructuring tax slabs. She also unveiled reforms in the insurance sector, eased tax laws, reduced duties on intermediaries, and pledged fiscal support for welfare schemes.
Despite the reforms, the government adhered to its fiscal consolidation roadmap, targeting a fiscal deficit of 4.4% of GDP in FY26, down from 4.8% in the current financial year.
Following the Budget of July 23, the Nifty has declined by 4%, with mid-cap and small-cap indices falling by 4.6% and 8.1% respectively, due to reduced economic growth affecting corporate performance and overseas investment interest.
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The Economic Survey forecasts India’s FY26 GDP growth between 6.3%-6.8%, consistent with the current fiscal year’s projection of 6.4%. Whilst the Budget is anticipated to focus on growth measures, analysts expect modest increases in capital expenditure.
Among Sensex constituents, Sun Pharma, Adani Ports, UltraTech Cement, IndusInd Bank, and NTPC showed gains, whilst Titan, Nestle India, Kotak Bank, and Asian Paints declined.
Sun Pharma led the Sensex with over 2% gains after reporting Rs 2,903 crore Q3 net profit, exceeding market expectations of Rs 2,847 crore.
Railway stocks surged up to 4% as investors anticipated increased sector spending in the Budget. RVNL, Titagarh Rail Systems, RailTel Corp, Ircon International, and IRFC showed.
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“On the Budget day the market reactions will be quick in response to Budget announcements. A major expectation from the Budget is a cut in personal income tax to provide relief to the middle class and boost consumption, thereby facilitating growth recovery. The extent of the tax relief remains to be seen. The fact is that there is no fiscal space for big relief,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
“The market will be looking for growth stimulating measures; not market-related taxation reliefs like changes in the capital gains taxation,” Vijayakumar continued.
“The market response to the Budget will not last more than a few days. Trends in growth and earnings recovery will dictate the medium to long-term market direction,” Vijayakumar added.