Tale of the Tape 

Hola Amigos. Markets were volatile AF as the budget took centre stage.

Nifty and Sensex swung from one extreme to another as investors digested the budget announcements. Midcaps (-0.4%) and Smallcaps (+0.4%) traded mixed.

It was an even mix of red and green across sectors. Real Estate (+3.3%), FMCG (+3%) and Auto (+1.9%) were the top winners. Energy (-2.1%), PSU Banks (-1.6%) and IT (-1.5%) witnessed the most selling pressure.

What are the top macro and sectoral takeaways from the Budget? Read our top story below.

Consumption stocks were on FIRE after the big income tax relief measures. Check out their charts below.

On the flip side, defence stocks slumped over capex spending worries. Mazagon Dock Shipbuilder (-5%), Bharat Electronics (-4%) and HAL (-4%) all ended in the red.

Here are the closing prints:

Economy
Budget 2025: Key Takeaways

Finance Minister Nirmala Sitharaman announced a series of measures to boost the domestic economy even as global macroeconomic conditions create uncertainty. NO TAX on income of upto 12 lakh p.a. stole all the limelight. But, there’s a lot more nuanced stuff going on. Here are the top takeaways:

1) Consumption boost: Middle-class FINALLY got a huge break. People earning up to 12 LPA will pay 0 tax, while up to 30 LPA should see their burden reduced by Rs 1.25 lakh. Consequently, experts say we should see a 1 lakh cr consumption boost. Not just FMCG, but real estate, auto, retail and other consumer discretionary stocks will also benefit!

2) Infra spending: Overall capex spending is FLAT YoY at Rs 11.2 lakh cr compared to FY25’s budget estimates. This has big implications. As a result, Defence, Railway and Infra stocks got KO-ed. Of course, another way of looking at it is that capex spending actually fell last year due to election uncertainty. PS - the GOI will actually spend only Rs 10.1 lakh cr so the FY26 target is +11% higher. But. markets are not yet buying it. FYI - market expert Sandip Sabharwal says the excessive pessimism here isn’t justified and a correction in infra stocks will be a solid buying opportunity!

3) Smaller wins: A bunch of sectors got a few things thrown at them. The rural sector got a big credit push (positive for 2-wheelers & tractors). The EV sector got a solid boost with Nirmala Sitharaman announcing incentives for manufacturing solar PV cells and batteries in india. On the flip side, OMCs got kicked in the teeth after the Budget made no mention of under recoveries for LPG cylinder sales.

Big Picture: Overall, it was a solid budget but there were a few misses. Lower taxes are great but we also need more factories to create jobs, highways to boost connectivity and fighter jets to defend our borders. You win some, you lose some! 

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