Markets Tumble After Budget as Sensex Plunges 2,300 Points, Nifty Slides 600

The aftermath of the Union Budget 2026 unfolded as the  Indian stock market tumbled after Finance Minister Nirmala Sitharaman presented her ninth consecutive Budget. The Sensex reportedly crashed more than 2,300 points from the day’s high, while the Nifty slipped over 600 points as investors remained on high alert.

According to reports, several investors were disappointed with Finance Minister Sitharaman’s speech due to the limited or lack of tax relief measures.

Markets had opened nearly flat, with Sensex adding a few points and Nifty slightly lower amid Budget-related caution and a weak rupee hovering near 92 per dollar.

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At the market open, most sectoral indices were in decline. Metal stocks fell the most, dropping over 3 per cent, while auto, private banking, oil and gas, and consumer durables saw small gains.

Bharat Electronics rose among the top Nifty gainers, suggesting that its medium- to long-term trend remains strong despite short-term price fluctuations. According to market analysts, the broader market decline was driven by investor caution, as no major income tax cuts were expected in this Budget following the significant tax relief announced in 2025.

The market is expected to remain volatile throughout the day, with sharp movements possible depending on announcements related to fiscal policy, capital expenditure, sectoral incentives, and the fiscal deficit target, which is expected to be around 4.3–4.4 per cent of GDP for FY27.

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Even though small changes in the tax system to support long-term growth were viewed positively, they were not enough to stop the initial market sell-off.

Minor tweaks in the tax regime and measures to support long-term growth were seen as positive but not enough to prevent the initial sell-off.

Analysts said, “Defence-linked stocks and manufacturing exports could attract attention, with PSU bank mergers and disinvestment announcements also being closely watched."

Trading on the stock exchanges will continue until 3:30 p.m., though shares bought on January 30 cannot be sold today due to the settlement holiday.

Inputs from IANS

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