Budget Day Trading: Sensex Flat, Nifty Down Amid Volatility & Caution

As of 9.24 am, Sensex added 9 points, or 0.01 per cent, to reach 82,278, and Nifty lost 28 points, or 0.11 per cent to settle at 25,291.

Main broad-cap indices posted notable losses as the Nifty Midcap 100 declined 0.73 per cent, and the Nifty Smallcap 100 lost 1.55 per cent.

All sectoral indices were trading in the red except auto, private bank, oil and gas as well as consumer durables. Nifty metal was the major loser down 3.10 per cent. Nifty auto was the notable gainer up 0.30 per cent.

Bharat Electronics was among the major gainers on the Nifty as investors await increased allocation to defense in the Budget.

Immediate support lies at 25,100 level, while resistance is anchored at 25,450-25,500 zone, market watchers said.

Analysts said that investors don't expect any major tax reliefs in this Budget since the 2025 Budget delivered huge income tax reliefs, though minor tweaks in tax regime is likely.

"An increase in exemption for long-term capital gains tax from Rs 1.25 lakhs presently to a higher limit that would be desirable. Market prefers a fiscally prudent, growth-oriented Budget. If rumours of exemption from long-term capital gains tax for certain categories of FIIs turn true, a rally is likely," they added.

Defence‑linked stocks are expected to draw investor attention during as a moderate 8 to 10 per cent rise in defence allocation is likely.

"A thrust area of the Budget could be exports, particularly manufacturing exports which the Economic Survey harps on. Announcements relating to PSU bank mergers and disinvestment in PSUs will be keenly watched," they suggestedd.

India's stock exchanges will hold regular trading sessions on Sunday from 9.15 am to 3.30 pm.

As it is a settlement holiday, any shares purchased on January 30 will not be eligible for sale on February 1. Similarly, stocks bought during the Budget Day cannot be offloaded the following day.

Markets are likely to remain highly volatile, with sharp moves possible in either direction depending on key announcements around fiscal policy, capex push, sector-specific incentives, and the fiscal deficit target (expected around 4.3-4.4 per cent of GDP for FY27), market watchers said.

Investors look for cues from debt metrics, deficit outcome and scheduled borrowings for the next year Budget to align with the government's strategic objectives.

On January 30, foreign institutional investors (FIIs) net bought equities worth Rs 2,251 crore, while domestic institutional investors (DIIs) were net sellers of equities worth Rs 601 crore.

- IANS