Sensex slides 2,900 pts since last Budget in July

MUMBAI: Optimistic expectations from the Budget on Saturday lifted the sensex by 741 points to 77,501 points. This optimism added about 2,100 points to the sensex in the last four sessions, though the index is down by about 2,900 points or 3.6% since the last Budget on July 23, 2024.
“It’s a broad-based rally across the sectors on Budget optimism evident in the last few sessions,” said Satish Chandra Aluri of Lemonn, a tech-driven broking firm. “Economic survey, tabled (on Friday) in Parliament, also contributed to positive sentiment as growth projections of 6.3-6.8% for FY26 was in line with expectations while comments on increasing pace in capex spends from govt improved the sentiment ahead of the Budget announcements (on Saturday).”

Since the last Budget, investors are poorer by about Rs 26.3 lakh crore with BSE’s market capitalisation now at Rs 433 lakh crore.
Since the last Budget day, the sell-off in the mid and smallcap stocks has seen worse than in sensex. Since July 23, 2024, BSE’s midcap index lost 7.3% while the smallcap index is down 5.4%.
Market players are waiting to see how the FM negotiates the current domestic and global challenges. “Budget 2025 holds far more significance compared to recent Budgets, as it is being presented at a time when the Indian economy is showing signs of weakness,” said Sheetal Malpani of Tamohara Investment Managers. “Meanwhile, the largest economy may experience significant shifts in strategic policy directions under the Trump presidency. Striking a balance between stimulating growth and maintaining fiscal deficit will be a tough challenge.”