Sensex crashes over 2,300 points after Budget; Nifty down over 600 points

Mumbai, Feb 1 (IANS) The Indian stock market saw a sharp intra-day fall on Sunday, after Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget.

The Sensex crashed more than 2,300 points from the day’s high, while Nifty slipped over 600 points during intra-day trading as investors turned cautious.

The fall came despite the Budget announcing measures to accelerate economic growth while maintaining fiscal prudence.

Markets had opened nearly flat, with Sensex adding a few points and Nifty slightly lower amid Budget-related caution and a weak rupee hovering near 92 per dollar.

At the opening bell, sectoral indices largely traded in the red. Nifty metal emerged as the biggest loser, down over 3 per cent, while auto, private banks, oil and gas, and consumer durables managed modest gains.

Bharat Electronics was among the top gainers on the Nifty, as investors awaited increased allocation to the defence sector in the Budget.

Market analysts said the fall reflected investor caution, as no major income tax reliefs were expected in this Budget following the significant tax cuts announced in 2025.

Minor tweaks in the tax regime and measures to support long-term growth were seen as positive but not enough to prevent the initial sell-off.

“Defence-linked stocks and manufacturing exports could attract attention, with PSU bank mergers and disinvestment announcements also being closely watched,” analysts said.

The market is expected to remain volatile throughout the day, with sharp movements possible depending on announcements related to fiscal policy, capital expenditure, sectoral incentives, and the fiscal deficit target, which is expected to be around 4.3–4.4 per cent of GDP for FY27.

Trading on the stock exchanges will continue until 3:30 p.m., though shares bought on January 30 cannot be sold today due to the settlement holiday.

Analysts said investors are closely watching debt metrics, deficit outcomes, and borrowings scheduled for the coming year to gauge the government’s strategic direction.