Indian stock market: 7 key changes over the weekend after Union Budget 2025

On Saturday, the Indian stock market closed flat after the presentation of the Union Budget 2025. The Sensex inched up by 5.39 points, or 0.01%, to settle at 77,505.96, while the Nifty 50 declined 26.25 points, or 0.11%, closing at 23,482.15.

The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open lower on Monday (February 3) as global market weakness weighs on investor sentiment. Asian markets saw a sharp decline, and US stocks ended the previous week in the red following fresh tariff impositions by US President Donald Trump on Canada, Mexico, and China.

Indian market performance bost-Budget 2025:

On Saturday, the Indian stock market closed flat after the presentation of the Union Budget 2025. The Sensex inched up by 5.39 points, or 0.01%, to settle at 77,505.96, while the Nifty 50 declined 26.25 points, or 0.11%, closing at 23,482.15.

Looking ahead, investors will keep a close watch on major market triggers such as the Reserve Bank of India's monetary policy announcement, the Bank of England's meeting, policy decisions from the US administration, corporate earnings reports, foreign fund flows, crude oil price trends, and key domestic and global macroeconomic data.

Asian markets drop sharply:

On Monday, Asian stock markets plunged as concerns over a global trade war intensified following the US' decision to impose tariffs on Canada, Mexico, and China.

* Japan's Nikkei 225 declined 1.84%, while the Topix fell 1.75%.
* South Korea's Kospi dropped 2.32%, with the Kosdaq shedding 1.9%.
* Chinese markets remained closed due to the Lunar New Year holiday.

Gift Nifty signals a gap-down opening:

Gift Nifty was trading around the 23,383 level, indicating a discount of nearly 170 points compared to the previous close of Nifty futures. This suggests a weak start for Indian stock market indices.

Wall Street faces sharp declines:

US stock futures tumbled on Sunday after the announcement of new tariffs on imports from Canada, Mexico, and China.

* Dow Jones Industrial Average futures fell by 463 points, or 1%.
* S&P 500 futures dropped 1.6%.
* Nasdaq-100 futures slumped 2.1%.

Fresh tariffs spark global concerns:

US President Donald Trump imposed tariffs of 25% on Canadian and Mexican imports, along with a 10% duty on Chinese goods. In response, Canada and Mexico vowed immediate retaliation, while China announced plans to take "countermeasures."

Japan's factory activity declines:

Japan's factory output recorded its sharpest decline in 10 months due to sluggish demand. The final au Jibun Bank Japan manufacturing purchasing managers' index (PMI) dropped to 48.7 in January, lower than the flash reading of 48.8 and December's 49.6.

Currency market movements:

The US dollar gained strength, impacting global currencies:

* The dollar rose 0.7% to 7.2552 yuan in offshore trading.
* Japan's yen remained flat at 155.25 per dollar.
* The dollar surged 2.3% to 21.15 Mexican pesos.

The euro initially plunged 2.3% to $1.0125, its lowest level since November 2022, before recovering to $1.0259.

Crude oil prices surge:

Crude oil prices spiked amid concerns over supply disruptions:

* Brent crude futures climbed 0.8% to $76.29 per barrel, reaching a high of $77.34.
* US West Texas Intermediate (WTI) crude futures gained $1.44, or 2%, to trade at $73.97 per barrel.

Market outlook:

With global economic uncertainties and ongoing trade tensions, Indian investors are likely to tread cautiously. Domestic market performance will be influenced by key policy decisions, corporate earnings, and international economic developments in the days ahead.