 "Budget 2025")
Stock Markets Today, February 1, 2025: The Indian benchmark indices, Sensex and Nifty50, are set to react to the Budget 2025 proposals during a special trading session on Saturday, February 1, 2025.
Finance Minister Nirmala Sitharaman will present her eighth consecutive budget today. This will also be the second budget under the third term of the Modi administration.
As per the Economic Survey tabled in Parliament by the Finance Minister on Friday, India's economy is forecasted to grow between 6.3 per cent and 6.8 per cent in the financial year 2025-26 (FY26).
Last checked, the GIFT Nifty futures stood at 23,533. Meanwhile, in the previous session, the benchmarks continued their upward momentum for the fourth consecutive day, closing with gains following the release of the Economic Survey for 2024-25. The BSE Sensex ended at 77,500.57, up 740.76 points or 0.97 per cent, while the NSE Nifty50 rose by 258.90 points or 1.11 per cent, finishing at 23,508.40.
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Domestic Cues
All attention will be on the Budget 2025 announcements and how investors respond to them. The Economic Survey 2025, released on Friday, indicated that the recent slowdown in investment activity is likely to be temporary, with early signs of recovery already emerging.
Additionally, the Survey noted that elevated valuations and optimistic market sentiments in the United States (US) have increased the chances of a 'meaningful market correction' in the Indian stock markets in 2025.
Capital markets regulator Sebi is planning to introduce a new combination product that will allow mutual funds to pair investments with life insurance, according to Sebi chief Madhabi Puri Buch on Friday.
Stocks in the smallcap segment saw their worst monthly decline in nearly three years. The Nifty Smallcap 100 Index ended January down by 9.9 per cent, marking its most major drop since May 2022 and the third-worst monthly performance since the COVID-19 pandemic.
India's fiscal deficit for April-December stood at Rs 9.14 trillion ($105.58 billion), or 56.7 per cent of the full-year estimate, as per government data released on Friday.
Other market triggers
FII, DII
FIIs sold shares worth Rs 1,188.99 crore on January 31, while DIIs bought shares worth 2,165.89 crore.
IPO corner
The total resource mobilisation from primary markets (equity and debt) for the first nine months of the current fiscal year 2024-25 (9M-FY25), from April to December 2024 reached Rs 11.1 trillion, according to the Economic Survey 2025. READ MORE
Commodity Market
Gold prices surged past the $2,800 mark for the first time on Friday, driven by a rush to safety amid the US President Donald Trump's tariff threats, raising concerns about global economic growth and inflation. Spot gold rose 0.6 per cent to $2,810.55 per ounce, after hitting a record high of $2,817.23.
Oil prices eased on Friday, closing lower as investors awaited the US imposition of tariffs on Canada and Mexico. Brent crude for March settled down 11 cents at $76.76 per barrel, while the more active second-month futures dropped 31 cents to $75.58. US WTI crude fell 20 cents, or 0.3 per cent, to $72.53.
Global Cues
The S&P 500 slid 0.50 per cent on Friday after news that President Trump’s tariffs on major US trading partners would begin Saturday. The Dow Jones lost 0.75 per cent, while the Nasdaq slipped 0.28 per cent. Stocks reversed gains after White House press secretary Karoline Leavitt confirmed the tariffs, including 25 per cent duties on Canada and Mexico and 10 per cent on China, would be announced Saturday.
Here's how analysts are assessing today's (February 1) trading session:
Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment
Nifty crossed its short-term hurdle of 23,430 and formed a strong bullish candle on the daily chart, indicating strength. The index also sustained above its 21-Days Simple Moving Average (21-DSMA) at 23,310, making it an immediate support level, while trendline resistance at 23,800 will act as a key hurdle. Traders are advised to adopt a buy-on-dips strategy.
Rupak De, senior technical analyst at LKP Securities
The current RSI reading supports a strong upward move in the market. However, much will depend on how market participants react during and after the budget. Support is placed at 23,300–23,200, while resistance is seen at 23,600 and 23,800.
