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Sensex Crashes 2,300 Points Post-Budget; Nifty Plunges Over 600

The Indian stock market witnessed a severe intra-day crash following the presentation of the Union Budget, with the Sensex plummeting over 2,300 points and the Nifty falling more than 600 points. The sell-off occurred despite growth-oriented budget measures, driven by investor caution over the absence of major income tax reliefs. Analysts noted that while long-term growth measures were positive, sectors like defence and manufacturing exports could see attention. The market is expected to remain volatile as traders digest announcements on fiscal policy, capital expenditure, and the government's deficit target.

Key Points: Stock Market Crash: Sensex Falls 2300 Points After Budget

  • Sharp intra-day sell-off post-Budget
  • No major income tax reliefs announced
  • Defence and manufacturing sectors in focus
  • Fiscal deficit target around 4.3-4.4%
  • Market volatility expected to continue
2 min read

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

Indian markets nosedive as Sensex crashes 2300 points and Nifty falls over 600 points intra-day following the Union Budget 2025 presentation.

"Defence-linked stocks and manufacturing exports could attract attention - Market Analysts"

Mumbai, Feb 1

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.

- IANS

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Reader Comments

P
Priya S
Short-term volatility is normal after a budget. The focus on defence and manufacturing is good for long-term growth. We need to be patient investors, not panic sellers. Bharat Electronics gaining is a positive sign!
R
Rohit P
Yaar, my portfolio is deep in the red today! Should have booked some profits last week. Lesson learned: always reduce exposure before a big event like the Budget. Hoping for a recovery by closing bell. 🤞
S
Sarah B
As an NRI investor, I appreciate the fiscal prudence mentioned. A high fiscal deficit would have been worse for the rupee and foreign investment. This dip might be a buying opportunity for quality stocks.
K
Karthik V
The market was expecting too much. Major tax cuts just happened last year. The budget has to balance growth with responsibility. The fall in metal stocks was expected given global trends.
M
Meera T
While the crash is worrying, I respectfully think the media focuses too much on daily Sensex points. What about the measures for long-term infrastructure and capex? That's what builds a strong economy, not daily stock prices.
D
David E
Interesting to see the divergence - defence up, metals down. Shows the budget's sectoral impact. The key will be execution of the

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