Saturday, February 1, 2025

particularly how the Sensex and Nifty fell despite Finance Minister Nirmala Sitharaman's tax incentives

 particularly how the Sensex and Nifty fell despite Finance Minister Nirmala Sitharaman's tax incentives



The Indian stock markets declined on February 1, 2025, after Finance Minister Nirmala Sitharaman delivered the Union Budget. The benchmark indices ended their trading session on February 1, 2025, at 77,069.85 points for BSE Sensex and 23,372.35 points for NSE Nifty 50 while experiencing a 0.56% decrease. 

REUTERS.COM

The stock market displayed negative sentiment because of the proposed rise in Securities Transaction Tax on futures and options (F&O) trades. Market sell-offs resulted due to investment cost concerns that investors voiced after the STT increase announcement. 

THEHINDU.COM

Fast-moving consumer goods (FMCG) as well as automotive markets registered growth in the midst of falling overall market value. The auto sector achieved a 2.1% growth rate and FMCG recorded a 3.1% increase during the recent period. A significant rise in stock prices occurred because the government implemented personal income tax cut policies to stimulate consumer spending. 

REUTERS.COM

The rise in stock values for insurance firms resulted from the government's decision to open their sector to 100% foreign direct investment (FDI). The shares of SBI Life and HDFC Life Insurance raised 2.3 percent in their stock price. 

REUTERS.COM

The Indian stock market indices declined during Nirmala Sitharaman's period as Finance Minister even after she offered tax incentives.

The budget attempted to boost consumer activity while seeking foreign capital but the higher tax on derivative transactions made investors more risk-averse which produced varying results among business sectors.

Indian Markets React to Union Budget Announcements

reuters.com

The union budget release creates a halt in Indian share performance even though consumption-oriented industries perform well.

reuters.com

India provides middle-class people tax relief through budgetary initiatives to drive growth and establish a reduced budget deficit.





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