Business News
3 min read | Updated on January 31, 2025, 18:16 IST
SUMMARY
Finance Minister Nirmala Sitharaman will present the Union Budget 2025 on Saturday, February 1. Investors are monitoring industry-specific developments and income tax relief for the middle class to boost consumption.
Since 2014, the 2021 Budget saw the highest market gains on Budget day. | Image: nseindia.com
As Finance Minister Nirmala Sitharaman is set to present her record eighth consecutive budget on February 1, the markets will be looking for positive triggers. In the last three Budgets, including an interim one, the NIFTY50 and the SENSEX ended in red.
The Union Budget 2025 falls on Saturday, February 1, and stock markets have announced that they will remain open as per regular market timings for the historic day.
In an exchange filing, the National Stock Exchange (NSE) said, "On account of the presentation of the Union Budget, Exchange shall be conducting live trading session on Saturday, February 01, 2025, as per the standard market timings." The BSE (formerly Bombay Stock Exchange) issued a similar circular.
The Budget raised short-term gains on some financial assets from 15% to 20%, while long-term capital gains on financial and non-financial assets surged to 12.5% from 10%. Moreover, STT on F&O was increased to 0.02% from 0.01%.
Insurance stocks skyrocketed 3% to 6% as the government increased the foreign direct investment (FDI) limit for the insurance sector to 74%. Infra stocks also gained as the Centre declared a National Bank for Financing Development (NaBFID) to facilitate infrastructure financing in the country.
NIFTY 50 | 1-Day prior | Budget Day | 1-Day post |
---|---|---|---|
2024 | -0.09% | -0.12% | -0.27% |
2024 Interim | 0.95% | -0.13% | 0.72% |
2023 | 0.07% | -0.26% | -0.03% |
2022 | 1.39% | 1.37% | 1.16% |
2021 | -1.32% | 4.74% | 2.57% |
2020 | -0.61% | -2.51% | 0.39% |
2019 | 0.25% | -1.14% | -2.14% |
2019 Interim | 1.68% | 0.58% | 0.17% |
2018 | -0.20% | -0.10% | -2.33% |
2017 | -0.83% | 1.81% | 0.20% |
2016 | 0.85% | -0.61% | 3.37% |
2015 | 1.85% | 0.65% | 0.62% |
2014 | -0.50% | -0.23% | -1.43% |
2014 Interim | 0.79% | 0.41% | 0.89% |
Finance Minister Nirmala Sitharaman will present the Union Budget 2025 on Saturday, February 1. Investors are monitoring industry-specific developments and income tax relief for the middle class to boost consumption.
Key things to watch in the upcoming Budget include fiscal deficit, capital expenditure, gross borrowing, tax revenue, disinvestment and asset monetisation, dividends from RBI and financial institutions, and GST collection.
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