Market trade flat ahead of union budget, investors cautious

Indian equity markets opened with a slight positive bias on Thursday as investors remained cautious ahead of the Union Budget presentation by Finance Minister Nirmala Sitharaman. The Nifty managed to stay above the 23,500 mark, while the broader market showed strength across sectors, barring IT stocks.

At 09:30 IST, the benchmark S&P BSE Sensex was up by 23.63 points, or 0.03%, trading at 77,524.20. The Nifty 50 index gained 15.55 points, or 0.07%, to trade at 23,523.95. Broader indices showed stronger movement, with the S&P BSE Mid-Cap index rising by 0.47% and the Small-Cap index gaining 0.82%.

Market sentiment remained positive, with advances outpacing declines on the Bombay Stock Exchange. A total of 1,769 shares advanced, while 1,119 declined, and 116 remained unchanged. The overall market breadth indicated strong buying interest, especially in non-IT sectors.

In the previous trading session, foreign portfolio investors (FPIs) were net sellers, offloading shares worth ₹1,188.99 crore. However, domestic institutional investors (DIIs) stepped in with strong buying, purchasing equities worth ₹2,232.22 crore, as per provisional data from January 31, 2025.

The focus now shifts to the Union Budget, which marks Sitharaman's eighth consecutive budget presentation. Analysts and market participants are expecting key measures to support economic growth, provide relief to the middle class, and address rising inflation concerns, all while maintaining fiscal discipline.

Investors are particularly watching for announcements related to taxation, infrastructure spending, and policy support for industries. The budget’s impact on key sectors such as banking, manufacturing, and real estate will play a crucial role in determining market direction in the coming days.