Union Budget 2025-26: Sensex and Nifty Surge Ahead of Budget Session

Domestic benchmark indices witnessed a strong bull rally on Saturday morning, ahead of the much-anticipated Union Budget 2025-26. The positive momentum continued for another trading session this week, boosting investor sentiment.

Market Performance

At 9:36 AM, the Sensex surged by 1.17%, gaining 898 points to reach 77,657.84, while the Nifty climbed 1.30%, adding 305 points to touch 23,557.05.

Among the top gainers on the Nifty were Sun Pharma, Airtel, Bharat Electronics, and NTPC, while ONGC, Hero Motocorp, BPCL, and Nestle were among the laggards.

Expert Insights

Prashant Khemka, fund manager at Fort Capital, stated that significant monetary policy interventions are expected from the Reserve Bank of India (RBI) during the Budget session.

This year's Union Budget 2025-26 is projected to emphasize economic growth while ensuring equitable development. The government is likely to prioritize rural development initiatives to improve living standards and foster inclusive growth.

Policy Focus

Finance Minister Nirmala Sitharaman is expected to continue the government’s push for big-ticket infrastructure investments to stimulate growth and generate employment. These investments are anticipated to play a crucial role in sustaining India’s economic momentum.

Broader Market Performance

Broader indices outperformed in early trade:

• Nifty Smallcap 250 rose 0.5%
• Nifty Midcap 100 climbed 0.3%

Institutional Investment Trends

On January 31, foreign institutional investors (FIIs) remained net sellers, offloading equities worth ₹1,188.99 crore, while domestic institutional investors (DIIs) purchased equities worth ₹2,232.22 crore, indicating strong domestic market participation.

Economic Growth Projections

The Economic Survey 2024-25, tabled in Parliament by Finance Minister Nirmala Sitharaman, projects India’s GDP growth at 6.3-6.8% for 2025-26.

The survey highlights that the Modi 3.0 government will maintain its focus on micro, small, and medium enterprises (MSMEs) and leverage a strong Rabi crop production to drive growth and employment generation.

With the Union Budget 2025-26 on the horizon, investors remain optimistic about policy measures that will support economic expansion. Market trends indicate confidence in sustained infrastructure investment and rural development, key themes expected to shape the upcoming budget session.