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Budget 2025: Stock markets open on Saturday, Feb 1; check NIFTY50 performance on Budget days since 2014

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3 min read | Updated on January 31, 2025, 18:16 IST

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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

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.

How has NIFTY50 reacted to past Budgets?

The markets settled marginally lower in the July 2024 Budget. The NIFTY50 was down 0.12%. This was primarily due to increased securities transaction tax (STT) on futures and options (F&O) trading and a hike in capital gains tax.

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%.

In the February 2024 interim Budget, the NIFTY50 declined 0.13%, while SENSEX shed 0.25% as Larsen & Toubro, Bajaj Finance, and Bharti Airtel dragged. In the Budget, the government did not propose any changes to direct and indirect tax rates.
Since 2014, the 2021 Budget saw the highest market gains on Budget day. The SENSEX was up 5%, while the NIFTY50 climbed 4.74%. The rise was due to positive sentiment on economic recovery post-pandemic, supportive fiscal measures, and sector-specific boost. The BANK NIFTY outperformed all sectors as the government announced an infusion of ₹20,000 crore into public-sector banks.

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.

NIFTY50 performance on Budget days since 2014

NIFTY 501-Day priorBudget Day1-Day post
2024-0.09%-0.12%-0.27%
2024 Interim0.95%-0.13%0.72%
20230.07%-0.26%-0.03%
20221.39%1.37%1.16%
2021-1.32%4.74%2.57%
2020-0.61%-2.51%0.39%
20190.25%-1.14%-2.14%
2019 Interim1.68%0.58%0.17%
2018-0.20%-0.10%-2.33%
2017-0.83%1.81%0.20%
20160.85%-0.61%3.37%
20151.85%0.65%0.62%
2014-0.50%-0.23%-1.43%
2014 Interim0.79%0.41%       0.89%   

Budget 2025

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.

To know more about Union Budget 2025, CLICK HERE
Upstox

About The Author

WhatsApp Image 2024-06-20 at 9.58.49 AM.jpeg
Kamal Joshi is a business journalist who covers industries, markets and IPOs. He is passionate about breaking news and enjoys playing tennis, where he loves flexing his backhand.

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