Budget 2024: Market Response and Expert Analysis

Budget 2024: Indian Market Reacts to Interim Budget Presentation

The Indian market experienced a day of volatility on Thursday, February 1, as it reacted to the interim budget presented by the government. Market indices closed in the negative territory, with a movement of less than one percent for the second consecutive budget day session.

Prior to the budget announcement, the BSE Sensex and Nifty both saw significant gains, reaching their day’s highs. However, following the budget disclosure, both benchmark indices witnessed a decline of almost one percent each from their intra-day highs, ultimately settling lower at the end of the day.

The interim budget, the sixth presented by the current Finance Minister, highlighted fiscal consolidation, infrastructure, agriculture, green growth, and railways. While no changes were made in tax rates, the fiscal deficit targets for FY24 and FY25 were outlined, with a focus on robust capital expenditure.

Market experts expressed mixed reactions to the budget, with some noting disappointment in the lower-than-expected infrastructure spending, while others highlighted the government’s commitment to fiscal prudence and its positive impact on economic ratings.

Looking ahead, market attention is expected to shift to earnings and the upcoming RBI policy next week. Experts advise investors to adopt a strategic, long-term approach, focusing on sectors poised for growth due to the government’s latest policy initiatives. Traders are advised to align their positions accordingly and focus on quality names in the current market environment.

Overall, the budget presentation has set the stage for further market movements, with a focus on key sectors such as affordable housing, infrastructure, and consumption. Investors are encouraged to stay informed and seek advice from certified experts before making any investment decisions.