Vikrant Shekhawat : Jan 31, 2025, 07:43 PM
Share Market Today: A day before the budget, the stock market witnessed a great boom. Both Sensex and Nifty registered a rise of about 1%, which increased the enthusiasm of investors. The main reasons behind this surge were positive expectations about the budget, GDP estimates in the Economic Survey, strength in tech stocks, possible rate cut by RBI and excellent quarterly results of companies. Experts believe that the budget will also determine the direction of the stock market in the coming days.Fourth biggest rise on FridayIf we look at the data of previous years, if we talk about the performance of Nifty a day before the budget from 2014 till now, then this time the rise was the fourth biggest. Even before the budget of the year 2022, Nifty had given a return of more than 1%, and this time too Nifty and Sensex have registered a gain of about 1%.Strength in major indicesOn Friday, the Sensex of Bombay Stock Exchange (BSE) closed at 77,500.57, up 740.76 points (0.97%). During the day, the Sensex reached a high of 77,605.96. Nifty also gained 1.11% or 258.90 points and closed at 23,508.40. Nifty reached a high of 23,546.80 during trading.Major factors behind the rise1. Expectations from the budgetInvestors are expecting tax exemption, increase in capex and improvement in railway, defense and manufacturing sectors in the upcoming budget, which keeps the market positive.2. GDP estimate in Economic SurveyThe Economic Survey presented on Friday has estimated India's real GDP growth for 2025-26 to be between 6.3% and 6.8%. This has increased confidence in the market.3. Strength in tech stocksDespite the recent sell-off in global tech stocks, tech stocks saw a recovery due to positive statements from companies like Meta, Microsoft and Nvidia, which also supported the Indian market.4. Rate cut expectations from RBIMorgan Stanley and other financial institutions believe that the RBI may cut rates by 25 basis points in the upcoming policy meeting, which will increase liquidity in the market and strengthen investment sentiment.5. Strong performance in the third quarterThe market got strengthened by better results from giants like Nestle India and L&T. Shares of Nestle India rose 4.2%, while L&T shares rose nearly 4.4%.Investors gain Rs 6.26 lakh croreInvestors' wealth increased significantly on Friday. The BSE market cap rose by Rs 6.26 lakh crore to Rs 4,24,13,299.14 crore in a day. Investors got huge profits from this increase.Will the boom continue?Experts believe that the next trend of the stock market will completely depend on the budget. If the government makes developmental announcements and takes decisions to boost the economy, the market may see further boom. However, any unexpected policy can also increase volatility. Therefore, investors are advised to be cautious.