Sensex, Nifty Trade Flat As Markets Brace For Budget Announcements

Indian equity markets opened on a cautious note on Budget Day, trading with increased volatility amid concerns over the Union Budget and a weak rupee hovering near the 92-per-dollar mark.

As of 9:24 AM, the Sensex was marginally higher by 9 points, or 0.01 per cent, at 82,278, while the Nifty slipped 28 points, or 0.11 per cent, to 25,291.

Broader indices underperformed the benchmarks, with the Nifty Midcap 100 declining 0.73 per cent and the Nifty Smallcap 100 falling sharply by 1.55 per cent, reflecting risk aversion among investors.

Sectorally, all indices were trading in the red except auto, private banks, oil and gas, and consumer durables.

Nifty Metal emerged as the biggest laggard, down 3.10 per cent, while Nifty Auto gained 0.30 per cent.

Bharat Electronics featured among the top gainers on the Nifty, supported by expectations of higher defence allocation in the Budget.

Market participants see immediate support for the Nifty at the 25,100 level, while they identify resistance in the 25,450–25,500 zone.

Analysts believe major tax relief measures are unlikely, given substantial income tax relief announced in the 2025 Budget, though minor tweaks to the tax regime remain possible.

Expectations include a potential increase in the long-term capital gains exemption limit and a fiscally prudent, growth-oriented Budget.

Investors are expected to keep defence-linked stocks in focus, driven by expectations of an 8–10 per cent increase in defence allocation.

Market participants will also closely track announcements related to exports, PSU bank mergers, and disinvestment plans.

Markets are likely to remain highly volatile, with investors reacting sharply to announcements on fiscal deficit targets, capital expenditure, and sector-specific incentives.

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