Weekly market update, Feb 01, 2025

Domestic benchmark indices ended the week on higher note taking the Union Budget 2025 as center stage. Global cues have been both mixed and concerning thanks to Trump’s tariff talks in order to make America rich again. With other economic stances like the unchanged rates from Fed that came in this week. On a weekly basis, the NSE Nifty 50 rose 1.69%, while the BSE Sensex ended 1.73% higher. Broader markets ended on a mixed note. The BSE Midcap ended 0.40% higher, and the BSE Smallcap ended flat this week. On the weekly sectoral trends, Nifty Realty, Auto, Finance, PSU Bank and Nifty Bank made the most gains. Nifty Media, Pharma and IT dragged the most.

The most appreciated announcement in the budget was the tax slab raise to Rs 12 lakh per annum income from Rs 7 lakh per annum. This budget puts more money in people’s hands, which should give a solid boost to consumption, consumer durables, and tourism. The MSME sector incentives will boost manufacturing. Manufacturers of lithium-ion batteries and electronics, thanks to lower import duties will also be benefited. The big push on shipping—especially inland shipping—will give the industry a much-needed boost. With a lower fiscal deficit, we could see interest rates come down, making room for potential rate cuts. That, in turn, should spur private capex and encourage more lending by banks and NBFCs, further driving economic growth.

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