Share Market Highlights 3 February 2025: Sensex closes down 319.22 pts or 0.41% at 77,186.74 pts; and Nifty 50 fell 121.10 pts or 0.52% to 23,361.05 pts
Budget reactions: Quote from Arpit Agrawal, co-founder and CIO – Electrum Portfolio Managers
Post Budget Quote on Tax Reforms, Private investment and Capital Markets
“As we await the detailed provisions of the 2025 budget, the initial indications suggest a clear emphasis on boosting consumption, particularly among the middle class. The proposed tax reforms are expected to put more disposable income in the hands of consumers, potentially driving increased spending. However, on the investment front, while market expectations were high for more substantial measures to boost investment, the allocation appears more modest, with a slight reduction in the overall figures. The budget highlights certain key sectors, including electronics, shipping, and nuclear energy, reflecting a strategic push towards these industries. While the investment proposals may not fully align with market expectations, the budget strikes a balance between consumption and investment, which seems appropriate given the current economic context.
On a broader economic scale, the fiscal deficit remains under control, and there are no significant surprises, whether positive or negative, except for the personal tax relief, which is notably more substantial. While the finer details will offer greater clarity, the budget as it stands appears to be balanced, positioning India for steady growth without introducing any major shifts in the economic trajectory.”