Sensex plunges 2,300 points intra-day as investors react to Union Budget 2026
Market analysts attributed the sharp fall to cautious investor sentiment, as the Budget did not announce significant income tax reliefs
PTC Web Desk: The Indian stock market witnessed a sharp intra-day decline on Sunday after Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget. Sensex fell over 2,300 points from the day’s high, while Nifty dropped more than 600 points during trading.
Markets opened nearly flat, with Sensex inching higher and Nifty slightly lower amid budget-related caution and a weak rupee near 92/USD.
Sectoral trends showed Nifty Metal as the biggest loser, down over 3%, while auto, private banks, oil & gas, and consumer durables gained modestly.
Bharat Electronics emerged as a top gainer, as investors anticipate higher defense allocations in the Budget.
Market analysts attributed the sharp fall to cautious investor sentiment, as the Budget did not announce significant income tax reliefs, following major cuts in 2025. Minor tax tweaks and growth-oriented measures were seen as positive but insufficient to prevent the initial sell-off.
Analysts noted potential interest in defense-linked stocks, manufacturing exports, PSU bank mergers, and disinvestment announcements.
The market is expected to remain volatile, influenced by fiscal policy, capital expenditure plans, sector incentives, and the projected fiscal deficit of 4.3–4.4% of GDP for FY27.
Trading will continue until 3.30 p.m., though shares bought on January 30 cannot be sold today due to the settlement holiday. Investors are closely monitoring debt metrics, fiscal deficit outcomes, and government borrowing plans for the year ahead.