Sensex, Nifty Soar As Survey Forecasts Pro-Growth Budget

Mumbai: Benchmark Sensex jumped 741 points, while Nifty rallied to close above 23,500 on Friday on heavy buying in Larsen & Toubro (L&T) post its Q3 results and the Economic Survey predicting a pro-growth budget.

Rallying for the fourth day running, the 30-share BSE Sensex ended 740.76 points or 0.97 per cent higher at 77,500.57. During the day, it jumped 846.15 points or 1.10 per cent to 77,605.96. The NSE Nifty rallied 258.90 points or 1.11 per cent to 23,508.40. During the day, it climbed 297.3 points or 1.27 per cent to 23,546.80. In the month of January, the BSE benchmark declined 638.44 points or 0.81 per cent, while the Nifty lost 136.4 points or 0.57 per cent.

“The indices are fueled with expectations of a pro-growth budget and prudent fiscal as indicated in the economic survey. Positive global cues and better-than-expected results from major companies also contributed to the upward trend. Market expects reductions in individual tax and job generation to boost consumption. By cutting fiscal deficit but continuing to boost infrastructure spending, the government may set the tone for a potential recovery in the consolidating market,” Vinod Nair, head (research), Geojit Financial Services.

The BSE smallcap gauge jumped 1.83 per cent and midcap index surged 1.76 per cent. All BSE sectoral indices ended higher.

“As the Union Budget approaches, the critical expectation is to revive market sentiment. Recent budgets have seen increased taxation on the capital market—higher STT, capital gains taxes, taxation of dividend income in shareholders’ hands, and the removal of tax benefits on buybacks. This year, it’s imperative for the Finance Minister to avoid introducing new taxes on investors. Instead, providing meaningful tax rebates to enhance consumer spending power could help revive the consumption cycle,” said Sunil Damania, Chief Investment Officer, Mojopms.

India is expected to record GDP growth of 6.3-6.8 per cent in 2025-26 on the back of strong fundamentals, calibrated fiscal consolidation and stable private consumption, said the Economic Survey tabled in Parliament on Friday. From the 30-share blue-chip pack, Larsen & Toubro climbed 4.31 per cent after the infrastructure and engineering major reported 14 per cent rise in consolidated profit after tax to Rs3,359 crore for the December quarter on the back of higher revenue from operations. Nestle surged 4.25 per cent after the FMCG major reported 4.94 per cent increase in net profit at Rs688.01 crore for the quarter ended December 31, 2024. IndusInd Bank, Titan, Tata Motors, Tata Steel, ITC and Maruti were the other major gainers. ITC Hotels, Bharti Airtel, Bajaj Finserv, Bajaj Finance and ICICI Bank were among the laggards.