In the early hours of Saturday, the domestic benchmark indices in Mumbai experienced a bullish surge, in anticipation of the Union Budget 2025-26.

At precisely 9.36 a.m., the Sensex was trading at an impressive 1.17 per cent or 898 points up, standing at 77,657.84. Concurrently, the Nifty also experienced a surge, rising by 305 points or 1.30 per cent, to stand at 23,557.05. 

Major Gainers and Losers

Among the major gainers on the Nifty were Sun Pharma, , Bharat Electronics, and NTPC. However, not all companies shared in this prosperity. ONGC, , BPCL, and Nestle found themselves on the losing end.

Prashant Khemka, a fund manager at Fort Capital, shared his insights on the situation. He anticipates that the Reserve Bank of  () will have a significant role to play during the Budget session. The RBI's actions and policies can greatly influence the direction of the market and the economy as a whole.

Government's Focus on Economic Growth and Equity

The Union Budget 2025 is expected to maintain the government's focus on promoting economic growth while ensuring equity. The government is likely to prioritize improving the quality of life in rural areas to ensure equitable and inclusive development.

This focus on rural development is a testament to the government's commitment to bridging the urban-rural divide. Finance Minister Nirmala Sitharaman is also expected to continue with the government's policy of stepping up investments in big ticket infrastructure projects. These projects are crucial for spurring growth and creating more jobs in the economy. The Budget for 2025-26 is likely to reflect this commitment.

Market Dynamics and Economic Projections

In early trade, broader indices outperformed with Nifty Smallcap 250 rising 0.5 per cent and Nifty Midcap 100 rising 0.3 per cent. This performance of the broader indices is  of the market. On January 31, foreign institutional investors (FIIs) remained net sellers, selling equities worth Rs 1,188.99 crore.

On the other hand, domestic institutional investors (DIIs) purchased equities worth Rs 2,232.22 crore on the same day. This dynamic between FIIs and DIIs is a crucial factor in the functioning of the market.

The Economic Survey 2024-25, tabled in , projects India's GDP growth at 6.3-6.8 per cent for 2025-26. This projection is a testament to the government's confidence in the country's economic potential.