Stock market crash today: Sensex down over 600 points, Nifty down over 200 on first day after Union Budget presentation

Sensex Crash Today: The stock market plummeted as trading for the week began on Monday, February 3, 2025, the first opening after the presentation of Union Budget 2024 on February 1. Metal, mid and small cap IT & telecom stocks, as well as real estate stocks fell the most

At 9:20 am IST, the benchmark BSE Sensex was down by 680.06 points or 0.88%, reaching 76,825.90. The broader NSE Nifty opened 224.45 points down or 0.96% in the red, reaching 23,257.70.

Akshay Chinchalkar, Head of Research at Axis Securities said, “today is most likely going to be a gap-down given the selloff in US equity futures and regional equities including the Gift Nifty on the tariff announcement.”

“Expect more than average volatility in the month of February, given that based on two decades of data, the Nifty has produced the worst returns in the month, losing 1% on average,” he added.

The Union Budget 2025, the second full budget of Modi 3.0, was presented by Finance Minister Nirmala Sitharaman in Parliament at 11 am on Saturday, February 1, 2025, marking her eighth consecutive presentation of a Union Budget.

The market was also open that day despite it being a Saturday to give it enough time to react to the budgetary announcements.

Key announcements included major tax reforms such as zero income tax for those earning below ₹12.75 lakh per annum, enhanced credit guarantee for Micro, Small and Medium Enterprises (MSMEs) with customised credit cards, exemption on custom duty for 35 additional capital goods for electric vehicles (EVs), A national framework to be formulated for promoting Global Capability Centres (GCCs), and a ₹500 crore allocation for a Centre of Excellence in Artificial Intelligence, among others.

“The sectoral budget would be positive for consumption-driven sectors like FMCG, auto footwear, etc,” said, Motilal Oswal, Group MD & CEO of Motilal Oswal Financial Services Ltd. "I remain positive in the medium to long term.”

Overall, capex spending planned at 11.2 lakh crore is in line with market expectations, he added. “Focusing on MSME manufacturing will also be positive for several sectors.”

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Which stocks fell the most?

Among the 30 Sensex stocks, Larsen & Toubro Ltd fell the most by 3.22%, trading at ₹3,336.25. This was followed by Tata Steel Ltd, which fell 2.78%, trading at ₹129.25, and ITC Hotels Ltd, which fell 2.26%, trading at ₹168.50.

Only 8 out of the 30 Sensex stocks were in the green.

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How did individual sectors perform?

All the Nifty sectoral indices were in the red.

Among them, the Nifty Metal Index fell the most by 3.19%, reaching 8,034.10, followed by Nifty Midsmall IT & Telecom, which fell 2.38%, reaching 10,038.05, and Nifty Realty, which fell 2.07%, reaching 932.75.

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How did the stock market perform on Budget day?

The stock market went into the red after opening, went green when Sitharaman began her budget speech, and closed flat after the trading session ended.

Oil & gas, FMCG, and PSU bank stocks fell the most upon open.

At 9:20 am IST, the Sensex was down by 63.06 points or 0.08%, reaching 77,437.51. The Nifty opened 19.30 points down or 0.08% in the red, reaching 23,489.10.

After the speech began at 11 am IST, the Sensex was up 254.25 points or 0.33% in the green, reaching 77,754.82, while the Nifty was up 82.55 points or 0.35% in the green, reaching 23,590.95.

At that time, real estate, media, and mid and small cap financial services stocks rose the most.

The markets then closed flat. The Sensex closed 5.39 points or 0.01% in the green, at 77,505.96, while the Nifty closed 26.25 points or 0.11% in the red at 23,482.15.

Real estate, FMCG, and consumer durables rose the most while PSU banks, IT, and oil & gas stocks fell the most.