The key equity benchmarks extended gains in mid-morning trade as the Budget for 2025-26 is being currently presented in the Parliament by the Union Finance Minister. The Nifty climbed above the 23,600 mark. Private bank shares extended gains for the fifth straight day.
At 11:28 IST, the barometer index, the S&P BSE Sensex, advanced 284.43 points or 0.37% to 77,785. The Nifty 50 index added 94.15 points or 0.40% to 23,602.55.
In the broader market, the S&P BSE Mid-Cap index advanced 0.40% and the S&P BSE Small-Cap index added 0.78%.
The market breadth was strong. On the BSE, 2,507 shares rose and 1,111 shares fell. A total of 161 shares were unchanged.
Union Budget 2025:
Finance Minister Nirmala Sitharaman began presenting the Union Budget in Parliament, outlining a plan focused on transformative reforms across six key areas: taxation, the financial sector, power, urban development, mining, and regulatory frameworks. The budget prioritized agriculture as the primary engine of growth, with the introduction of the Developing Agri Districts Programme, modeled after the aspirational districts initiative. This program will promote crop diversification, improve irrigation, and expand credit access for 1.7 crore farmers, while also addressing post-harvest storage issues. Sitharaman announced a special focus on tur, urad, and masur dal in a plan to achieve self-reliance in pulses, with NAFED and NCCF procuring these pulses from farmers as part of the DHAN DHANYA YOJANA. To further support the agricultural sector, a Makhana Board will be set up in Bihar, and a National Mission on High-Yielding Seeds will be launched.
The budget emphasizes GYAN ' Garib (poor), Youth, Annadata (farmers), and Nari (women) ' and commits to energy security and export promotion. Sitharaman identified agriculture, MSMEs, and exports as key drivers of economic growth, highlighting India's status as the fastest-growing major economy.
The 2025-26 budget builds on the government's commitment to accelerated and inclusive development, aiming to boost household confidence and empower the Indian middle class. Sitharaman emphasized India's rapid economic growth compared to other major economies, citing the country's development record and structural reforms of the past decade. She noted the increased global confidence in India's capabilities and potential, and expressed the government's view of the next five years as a unique opportunity to achieve Sabka Vikas, stimulating balanced growth across all regions.
Buzzing Index:
The Nifty Private Bank index advanced 0.85% to 24,593.80. The index jumped 4.06% in five consecutive trading sessions.
Axis Bank (up 1.51%), IndusInd Bank (up 1.38%), Bandhan Bank (up 0.71%), City Union Bank (up 0.65%) and Kotak Mahindra Bank (up 0.45%), RBL Bank (up 0.33%), ICICI Bank (up 0.26%), HDFC Bank (up 0.16%) advanced.
On the other hand, IDFC First Bank (down 1.2%), Federal Bank (down 0.06%), edged lower.
Stocks in Spotlight:
Kaynes Technology India jumped 3.39%. The company announced that its deputy chief financial officer, R. Balasubramanian, has resigned, with effect from 30 January 2025, due to personal reasons.
RailTel Corporation of India rallied 2.53% after the firm said that it has received the work order from Department of Education Samagra Shiksha for supply and service amounting to Rs 15.98 crore.
Oil & Natural Gas Corporation (ONGC) fell 0.42% after the company's standalone net profit fell 16.7% to Rs 8,239.92 crore in Q3 FY25 compared with Rs 9,891.71 crore in Q4 FY24. Revenue from operations declined 3.08% YoY to Rs 33,716.80 crore in Q3 FY25.
Global Markets:
The Trump administration announced new tariffs on imports from Mexico, Canada, and China, starting Saturday. These tariffs are partly in response to illegal fentanyl distribution. Potential tariffs include 25% on Mexican and Canadian imports, 10% on Chinese goods, and future tariffs on chips, oil, gas (possibly by February 18th), steel, aluminum, and copper. Trump insists these tariffs are unavoidable and will generate substantial revenue, even hinting at possible European tariffs. He contrasted the US's historical reliance on tariffs with its current dependence on income tax.
The news caused US stock market declines. At the close in NYSE, the Dow Jones Industrial Average fell 0.75%, while the S&P 500 index declined 0.5%, and the NASDAQ Composite index declined 0.28%.
Apple shares closed lower as the broader market selloff erased earlier gains. The company expects sales growth in the low- to mid-single digits for its fiscal second quarter, easing concerns about flagship handset sales, which slightly missed estimates in the holiday season. CEO Tim Cook remains optimistic, citing Apple Intelligence (AI features) as a driver of future sales.
Exxon Mobil stock fell 2.5%, despite exceeding fourth-quarter profit expectations. Higher oil and gas production helped offset lower crude prices and weaker refining margins.
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