Indian stock market remains volatile post Union Budget

Mumbai, Feb 1: The domestic stock market on Saturday saw significant fluctuations after Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26.

Following an initial rise, both the BSE Sensex and NSE Nifty were trading in the red.

The BSE Sensex dropped by 455 points and Nifty fell by 115 points shortly after the Budget speech. This followed an earlier surge when the Finance Minister announced that there would be no income tax for individuals earning up to Rs 12 lakh.

The news initially sent the markets rising, but the rally was short-lived as the markets turned flat soon after.

The Budget estimate for the financial year 2025-2026 is around Rs 31.47 lakh crore, as announced by FM Sitharaman in Parliament.

The Nifty FMCG, Auto, Realty, and Consumer Durables indices saw positive movement, while other sectors struggled.

Among sectoral indices, the Nifty Metal index recorded the biggest loss with a fall of 1.94 per cent.

It was followed by Nifty Oil & Gas, which dropped by 1.93 per cent, and Nifty PSU Bank and Nifty Mid-Small IT & Telecom, both of which declined by 1.29 per cent.

In other Budget-related updates, the new tax regime will revise the tax rate structure. For income between Rs 0 and Rs 4 lakh, there will be no tax. Income between Rs 4 lakh and Rs 8 lakh will be taxed at 5 per cent, while income between Rs 8 lakh and Rs 12 lakh will attract a 10 per cent tax.

For income between Rs 12 lakh and Rs 16 lakh, the tax rate will be 15 per cent, and for income between Rs 16 lakh and Rs 20 lakh, the rate will be 20 per cent. Income between Rs 20 lakh and Rs 24 lakh will be taxed at 25 per cent, and any income above Rs 24 lakh will be taxed at 30 per cent.

Meanwhile, global markets were impacted as Wall Street indices fell after US President Donald Trump announced tariffs on Canada, Mexico, and China, set to take effect from February 1.