Union Budget 2026 Live: Nifty, Sensex Fail To Recover From Budget Day Shocker

Key Highlights From Union Budget 2026  

➤ Three Pillars

  • Boost economic growth
  • Fulfil aspirations of people
  • Sabka Sath, Sabka Vikas

➤ Sectors That Were Benefitted

 • Infrastructure
 • Electronics, Semiconductors
 • Railways
 • Tourism
 • Pharma 
 • Logistics

➤ AI and New Tech found mention in the budget speech

➤ Markets were not happy with the STT hikes

➤ Focus on gradual fiscal consolidation

Gaurav Seth, CEO of 5paisa, On Budget 2026

"Government's sharp focus on manufacturing along with infra development will continue to be a fillip for the economy. Easing of norms for PROIs by allowing investments in equity instruments is also a positive," said Gaurav Seth, CEO, 5paisa Capital Ltd.
 
On the STT hike for F&O trades, Seth said, "We are evaluating the impact of STT hike on business and while the market's initial reaction has been negative, I expect it to normalise as we digest the fineprint. We are expecting the move to reduce speculation in the space and lead to a more mature ecosystem." 

Indian Markets Close Lower On Budget Day

Nifty and Sensex closed on red on budget day, February 1. Nifty declined 1.96% and Sensex slipped 2.53%. India VIX jumped 11.73% to 15.23. 

High Speed Corridors To Become "The Bridge For Economical Robust Centers": FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman said that the high speed corridors are expected to become the bridge for economical robust centers. The center allocated ₹500 Cr over five years in each cities for the development of high speed rail corridors. The corridors are between Mumbai–Pune, Pune–Hyderabad, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi, and Varanasi–Siliguri

The Capex allocation 4.4% of the GDP: Finance Minister 

Finance Minister Nirmala Sitaraman said that increasing public capex expenditure will continue. The ₹12.2 lakh crore capex allocation is "4.4% of the GDP," she said during the press conference. 

Union Budget 2026: What Gets Costlier

➤ Income tax misreporting 

➤ Non-disclosure of movable assets 

➤ Stock options and futures trading 

Union Budget 2026: What Gets Cheaper  

➤ Overseas tourism packages 

➤ Foreign education 

➤ Alcoholic liquor, scrap, certain minerals 

➤ Shoe upper exports 

➤ Energy transition equipment 

➤ Solar glass ingredients 

➤ Capital goods for critical minerals

 
➤ Components and parts for civilian, training, other aircraft 

➤ Microwave ovens 

➤ Personal use imports 

➤ Drugs for rare diseases and cancer 

➤ Fish caught by Indian fishermen in Indian waters 

➤ Goods imported for nuclear power projects 

How Government Spends ₹100  

➤ States Share of Taxes: ₹22

➤ Interest Payment: ₹20

➤ Central Sector Scheme: ₹17

➤ Defence: ₹11

➤ Centrally Sponsored Scheme: ₹8

➤ Finance Commission & other transfers: ₹7

➤ Other Expenditures:₹7

➤ Major Subsidies: ₹6

➤ Civil Pension: ₹2

How Government Earns ₹100   

➤ Borrowing and Liabilities: ₹24

➤ Income Tax: ₹21

➤ Corporation Tax: ₹18

➤ GST and other taxes: ₹15

➤ Non-Tax Revenue: ₹10

➤ Union Excise Duties:₹6

➤ Customs: ₹4

➤ Non-Debt Capital Receipts: ₹2

Budgetary Allocation On Major Items

➤ Transport: ₹5,98,520 crore

➤ Defence: ₹5,94,585 crore

➤ Rural Development: ₹2,73,108 crore

➤ Home Affairs: ₹2,55,234 crore

➤ Agriculture and Allied Activities: ₹1,62,671 crore

➤ Education: ₹1,39,289 crore

➤ Energy: ₹1,09,029 crore

➤ Health: ₹1,04,599 crore

➤ Urban Development: ₹85,522 crore

➤ IT and Telecom: ₹74,560 crore

➤ Commerce and Industry: ₹70,296 crore

➤ Social Welfare: ₹62,362 crore

➤ Scientific Departments: ₹55,756 crore

➤ Tax Administration: ₹45,500 crore

➤ External Affairs: ₹22,119 crore

➤ Finance: ₹20,649 crore

➤ Development of North East: ₹6,812 crore

Seaplane VGF Scheme For Tourism and Hubs for Medical Value Tourism  

The budget 2026 proposed scheme to promote tourism in the country. The centre is planning to establish five Regional Medical Hubs, in partnership with the private sector, aiming to promote India as a hub for medical tourism. 
The center also proposed to give incentives to indigenise manufacturing of seaplanes under the Seaplane VGF Scheme.    
"The Tourism sector has the potential to play a large role in employment generation, forex earnings and expanding the local economy," the Finance Minister said. 

Union Budget 2026: Nirmala Sitharaman's Speech Lasts 85 Minutes

Finance Minister Nirmala Sitharaman's 2026 budget speech lasted for 85 minutes. Sitharaman's 2020 speech remains the longest, with 2 hours and 40 minutes.

Budget Speech Durations Over The Years:

➤ 2019: 2:17 hours

➤ 2020: 2:40 hours 

➤ 2021: 1:50 hours 

➤ 2022: 1:32 hours 

➤ 2023: 1:27 hours 

➤ 2024 (Feb): 56 min  

➤ 2024 (July): 1:22 hours 

➤ 2025: 1:14 hours

Nominal GDP Projected To Grow By 10% in FY27; 8% in FY26  

Nominal GDP is projected to grow by 10% in FY27. The nominal GDP growth is expected to grow 8% in FY26. The Fiscal Deficit for 2026-27 is estimated at 4.3%, and the Gross Borrowing Target for 2026-27 is projected at ₹17.2 lakh crore

Union Budget 2026: Nifty Slips Over 2%; Sensex Decline Over 1%  

Nifty and Sensex declined over 1% on Budget day. Nifty 50 tumbled over 2.7%, and Sensex slipped over 1.89% as the Finance Minister Nirmala Sitaraman concluded the budget speech.

Nifty Midcap 150 declined 1.92%, and Nifty Smallcap 250 slipped 2.08%. 

Union Budget 2026 Live: Revised Import Duties 

Finance Minister announced that the Import duties on personal use items will be cut to 10% from 20%. The import duties on 17 drugs and medicines are also to be reduced. 

STT On Futures To Be Hiked To 0.05% From 0.02%; Broker Stocks Tumble  

STT on futures is to be hiked to 0.05% from 0.02%. Share prices of broker stocks like Angel One, Groww, 5paisa, Anand Rathi decline. Anand Rathi shares dropped almost 6%, and Groww shares tumbled over 8%. Angel One hits lower circuit, and 5paisa Capital shares declined over 3%. STT on options premium and exercise of options to be raised to 0.15% from rate of 0.1% and 0.125%, respectively.

Union Budget 2026: Change In Taxation For Buybacks  

Finance Minister proposes change in taxation of buyback to address the improper use of buyback rules. 
Taxation on buyback will be for all shareholders as capital gains. Promoters will pay an additional buyback tax. Effective tax will be 22% for corporate promoters, and 35% for non corporate promoters. 
 

Tax holiday for cloud services till 2047  

Finance Minister Nirmala Sitharaman proposed a tax holiday for cloud services till 2047. However, they will have to serve Indian customers via an Indian reseller entity.

Exemption Up To 3 Years For Dividend Income  

Union Budget proposes an exemption of up to three years for dividend income for member co-operatives 
 

Union Budget 2026: Timeline For Filing Tax Returns   

Taxpayers with ITR Forms 1-2: 31 July 
For trusts and non-audit businesses: 31 August
 

Big Economy Numbers in Union Budget 2026  

Debt-to-GDP ratio estimated at 55.6% of GDP in BE 2026-27  
Fiscal Deficit for 2026-27 estimated at 4.3%
Revised Fiscal Deficit for 2025-26 at 4.4%
Gross Borrowing Target for 2026-27 ₹17.2 lakh crore

New IT Act to come into effect from April 1 2026.  

Union Budget 2026 proposes an New Income Tax Act, effective from April 1,2026. 

Union Budget 2026: Announcement For Indian Farmers   

Finance Minister Nirmala Sitharaman proposed support for farmers for increasing farmer incomes and special attention to small and marginal farmers.
"To diversify farm outputs, increase productivity, enhance farmer income, we will support high value such as coconut, cashew, coco in coastal areas and nuts such as walnuts and pinenuts," she said. 
 

SHE Marts For Empowering Women Entrepreneurship   

_{Self-Help Entrepreneur scheme, or SHE Marts, to be introduced for empowering women entrepreneurship.} 
 

Union Budget 2026: Push To Encourage Women Participation in STEM  

With Viability Gap Fund (VGF) or capital support, one girls hostel to be set up in every district to facilitate women participation in STEM. 
 

Comprehensive Review of Forex Management and Access To funds and Derivatives in Corporate Market  

Union Budget proposes user friendly framework for foriegn investment. Announces suitable access to funds and derivatives in Corporate bond market. 
Larger cities issuing high-value municipal bonds to be incentivised with ₹100 crore for a single bond issuance exceeding ₹1,000 crore, building on the existing Amrit scheme.

High Speed Rail Corridors Between Cities   

Union Budget allocates ₹500 Cr over five years in each cities for the development of high speed rail corridors. The corridors are between Mumbai–Pune, Pune–Hyderabad, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi, and Varanasi–Siliguri

Union Budget 2026: ₹12.2 Crore Capex Allocation for FY27  

Centre allocated ₹12.2 crore in public capex for FY27. The allocated capex in 2015 was ₹2 lakh crore. The FY26 capex allocation ₹11.2 Crores. 
 

Union Budget 2026: ₹10,000 Cr SME Growth Fund Proposed 

Budget proposes three-prompted approach to help grow SMEs and Micro enterprises. Finance Minister proposes ₹10,000 Cr SME Growth fund to "create future champions."
The government is also planning to mandate TReDS as a trade settlement platform for CPSEs-MSMEs, introduce credit guarantee for MSMEs, and link GeM with TREADs. TReDS receivables are to be designated as asset backed securities.
 

Union Budget 2026: Rare Earth Corridors Proposed 

The budget proposes scheme for Rare Earth Permanent Magnets, research, mining, processing and manufacturing. Odisha, Kerala, Andhra Pradesh and Tamil Nadu dedicated as rare earth corridors, to support the mineral-rich States. In November 2025, a scheme for Rare Earth Permanent Magnets was launched.

Budget Push For Semicondutors

Nirmala Sitharaman announced the project, India Semiconductor Mission (ISM) 2.0, with increased outlay to ₹40,000 crore for Semiconductor sector. 

Budget to Focus On Accelerating and Sustaining Economic Growth  

Moves to accelerate and sustain economic growth:

 ➤ Scaling up manufacturing in 7 sectors

➤ Rejuvenating legacy industries

➤ Creating SMES

➤ Powerful push for infrastructure

➤ Long term security and stability

➤ Developing City Economic Regions

Union Budget 2026 To Focus On Three Areas: Nirmala Sitharaman  

Finance Minister Nirmala Sitharaman says the Union Budget 2026 will focus on three areas. Building reilience to volatile global giants, fulfilling the  needs of people, and measures that align with 'Sab ka sath sab ka vikas.'

Finance Minister starts budget speech  

Finance Minister Nirmala Sitharaman starts presenting the Union Budget speech in the Parliament
 

Cabinet Approves Union Budget 2026

The Union Cabinet chaired by Prime Minister Narendra Modi approved the Union Budget 2026. Finance Minister Nirmala Sitharaman is now expected to present the budget in Parliament at 11 AM. 

India's GDP Growth Projected At 6.8-7.2%  

Economists surveyed by Bloomberg expected the growth to slow down about 6.5%. The government has projected growth at 6.8% to 7.2%, in the Economic Survey 2026. 
 

Union Budget 2026 Live: Nifty, Sensex Range Bound Ahead of Budget Speech

Finance Minister Nirmala Sitharaman will table the Union Budget 2026 in Parliament at 11:00 AM. This marks her ninth consecutive Union Budget presentation. Ahead of the announcement, markets are trading in a volatile range with a bearish bias with Nifty down around 0.33%, Sensex lower by nearly 200 points, and Bank Nifty down over 0.6%.

Economic Survey 2026 Live: India-U.S. Trade Talks To Be Concluded This Year  

The ongoing trade negotiations with the United States is expected to conclude by the end of the year, Economic survey 2026 stated. The survey read that this could help reduce the uncertainty. India and the U.S. has concluded six rounds of talks till now. 

Economic Survey: SEBI Code Seen As Blueprint For Regulatory Reform  

The Economic Survey 2025-26 says the new Securities Markets Code (SMC), 2025 could become a template for wider regulatory reform across India’s financial and administrative governance architecture, beyond capital markets. The Code consolidates key securities laws, including the Securities Contracts (Regulation) Act, the SEBI Act and the Depositories Act, into a unified framework aimed at strengthening investor protection and capital formation.

Economic Survey 2026 Live: Rupee Pressure Driven By Global Factors, Not Domestic Stress, Says CEA  

Chief Economic Advisor Anantha Nageswaran said that the pressure on rupee is driven by Global factors, not domestic. He was briefing the Economic survey. 

Economic Survey 2026 Live: Indian Economy Expected To Grow Between 6.8% and 7.2%   

Economic Survey expects the Indian economy to grow between 6.8% and 7.2% in FY26-27. Finance Minister Nirmala Sitaraman tabled the Economic Survey in Lok Sabha. This prediction is in line with IMF growth prediction of 7.3% for 2025-26. However, this estimate is lower than the current-year estimate, which was 6.3% to 6.8%. 

Economic Survey 2026 To Be Tabled Today

Finance Minister Nirmala Sitaraman is expected to table the Economic Survey in the Parliament between 11 AM and 12 PM today. Economic survey, prepared by the Department of Economic Affairs, is a review of India's economic performance over the year. It also reveals the economic outlook for the upcoming year. 

NITI Aayog Urges GST Cuts and Insurance Incentives To Accelerate Vehicle Scrapping  

NITI Aayog has urged the GST to be reduced for vehicle scrapping facility in formal sector, in a report “Enhancing Circular Economy of End-of-Life Vehicles.”

It also called for insurance push to boost vehicle scrapping. "Vehicle insurance can serve as a powerful instrument to incentivize the timely and environmentally sound disposal of ELVs," the report read. 

Currently, the taxation for the formal end-of-life vehicles (ELVs) follows non-uniform GST rates across different stages:

➤ELV Procurement: 12%-18%

➤Sale of Metal Scrap: 18%

➤Resale of spare parts: 28%

Following the GST Council’s announcement of revised tax slabs effective September 22, 2025, the above products will continue to be taxed under two separate, non-uniform rates of 5% and 18%. And most of the products will fall under the 18% slab. However, the informal sector doesn't have any GST obligations, giving a cost disadvantage for Registered Vehicle Scrapping Facility (RVSF). 

"A reduction in their GST rates would help promote parity and support formalisation," NITI Aayog said. The government think tank also thinks that this move will ease financial pressure on RVSFs and incentivise formal market participation.

Gems and Jewellery Sector Eyes Duty Cuts & GST Relief

The gems and jewellery industry is eying a set of targeted fiscal and policy measures to ease cost pressures, sustain demand, and strengthen export competitiveness. The sector is calling for rationalisation of import duties on essential raw materials such as gold, silver, platinum and coloured gemstones. The gems and jewellery industry expects that lower duties would reduce input costs and improve pricing power for manufacturers, as per a Moneycontrol report. 

The industry is also urging the government to introduce simplified customs procedures to enhance ease of doing business and reduce logistics delays for exporters. This includes faster clearances, risk-based checks and greater digitalisation. 

Mangesh Chauhan, Managing Director of Sky Gold & Diamonds told Moneycontrol that the industry is pushing for GST reforms on jewellery, including a reduction from the current rate of 3% to around 1 - 1.25%. The stakeholders have also proposed regulated small-ticket EMI options for gold purchases to support affordability in a high price environment. Additionally, the sector wants policy support for mobilising household gold, vocational training for artisans, and investment in export cluster infrastructure. There is also a push for the early rollout of the Tourist GST Refund scheme at major airports to boost luxury jewellery sales to foreign visitors. 

Budget 2026: Real Estate Industry Seeks Tax Relief and Policy Stability

The real estate sector has called for tax relief measures and stable, long-term policy support to sustain housing demand and boost investment ahead of the Union Budget 2026. According to a News18 report, industry stakeholders have urged the government to rationalise stamp duty, provide income tax benefits for homebuyers, and extend incentives for affordable housing to improve affordability and revive end-user demand. 

Developers have also sought clarity on capital gains taxation and GST rationalisation on construction materials. They have also called for continued support for infrastructure development to lower project costs and improve project viability. The sector is looking for consistency in regulatory policies and faster approvals to enhance the ease of doing business and attract both domestic and foreign investment. Industry leaders believe that targeted fiscal support in Budget 2026 could accelerate urban housing supply, strengthen allied industries such as cement and steel, and contribute meaningfully to employment generation and economic growth. 

Budget 2026: Equity Investors Seek Lower LTCG Tax and STT 

Ahead of the Union Budget 2026, equity market participants have called for reducing the Long-Term Capital Gains (LTCG) tax and the Securities Transaction Tax (STT) to boost investor participation and improve market depth. According to a Moneycontrol report, market experts and investor associations believe that the current LTCG tax structure and high STT increase transaction costs and discourage long-term savings through equities. 

Industry voices have urged the government to rationalise capital gains taxation to make Indian markets more attractive compared to global peers. A lower LTCG tax could encourage long-term holding and improve retail participation. This could channel more household savings into productive financial assets. Similarly, a cut in STT is expected to enhance liquidity, reduce trading friction, and support higher volumes, especially in the derivatives and cash segments. These measures, investors argue, would strengthen India’s capital markets as the economy targets higher growth and deeper financialisation. 

Income Tax Union Budget 2026 May Grant Infrastructure Status To Aircraft 

The Union Budget 2026 may consider granting infrastructure status to aircraft under asset category, industry sources said the Hindu Business Line. 

The move aims to support growth in India’s aviation sector by easing financial challenges.  This would allow airlines to obtain more affordable financing when purchasing an aircraft, allowing airlines to access loans at lower interest rates and from more lenders. If this happens, the loans for aircraft acquisition will come under Priority Sector Lending (PSL), which comes under the Reserve Bank of India (RBI). And under PSL guidelines, the banks must ensure that loans are extended to identified sectors.  

Infrastructure access was given to commercial shipping vessels in the previous budget. Start-up airlines and small-capacity operators with limited access to credit could benefit from this move.  

Budget 2026: Focus to Be on GDP Growth, Capex, and Fiscal Deficit

Morgan Stanley expects the government to cap the fiscal deficit at 4.2% of GDP in FY27, compared with the targeted 4.4% in FY26. Union Budget is expected to aim at maintaining its consistency as the fourth largest economy in the world, despite the ongoing geopolitical tensions, trade-war and tariff threats from the U.S, as per news reports.   

According to a Mint report, Morgan Stanley estimates that the new 4.2% target would help in pushing the central government debt down to around 55.1% of GDP from an estimated 56.1% in FY26. So, over the medium term, the investment banker expects the government to reduce its debt-to-GDP ratio to about 50% by FY31. The Union Budget 2026 would focus on capital expenditure to support job creation, social sector spending, and a renewed push in structural reforms.  

Stay Tuned for Live Union Budget 2026 Updates!

Union Budget 2025 to be presented February 1, 2026, on Sunday.