Budget 2025: Global markets have grown significantly over the last year, with some main indices reporting double-digit increases, demonstrating resilience in the face of persistent economic uncertainty. In contrast, MSCI India Net USD reported a mild increase of 4.74%, reflecting cautious sentiment.
As the Union Budget is scheduled to be released today, February 1, 2025, many participants anticipate increased volatility in the Indian stock market. Historically, the Nifty 50 has experienced intraday movements of 2% to 3% on Budget Day, offering traders with both lucrative opportunities and significant pitfalls.
Global equity markets have grown significantly over the last year, with some prominent indices reporting double-digit increases, demonstrating resilience in the face of persistent economic uncertainty. Samir Arora, Founder and Fund Manager at Helios Capital, underlined this trend by sharing data showing global markets’ robust performance.
In contrast, the benchmark Nifty 50 has fallen more than 10% from its top in the last four months, owing to persistent foreign investment withdrawals and concerns over high valuations. Arora commented on market dynamics in a post on X (previously Twitter):
“Just to put Indian stock mkt performance in perspective – over last one yr- when people talk about how mkt has gone up a lot and it has to cool down etc.,” Arora tweeted.
Just to put Indian stock mkt performance in perspective – over last one yr- when people talk about how mkt has gone up a lot and it has to cool down etc. pic.twitter.com/igp7d3pty7
— Samir Arora (@Iamsamirarora) February 1, 2025
Arora’s remarks come amid concerns that India’s market is about to correct. However, the figures show that, in comparison to worldwide benchmarks, the Indian stock market’s gain has been small.
US markets lead the rally.
The US markets demonstrated outstanding strength.
The NASDAQ Composite increased by 29.43%, boosted by strong tech sector development and AI-driven breakthroughs.
The S&P 500 Index increased by 24.66%, demonstrating a broad-based recovery across sectors.
The Dow Jones Industrial Average rose 16.76%, boosted by industrials and consumer discretionary companies.
European Indices Show Varied Performance
The DAX Index surged 28.56%, beating its peers, thanks to strong industrial and export-driven growth.
The Euro Stoxx 50 Price Index gained 13.74%, demonstrating resilience in the eurozone economy.
The FTSE 100 Index and IBEX 35 Index rose by 13.67% and 22.74%, respectively.
CAC 40 Index reported a modest 3.83% increase
Asian Markets: Contrasting Fortunes
MSCI China led with an amazing 30.48% gain, owing to a resurgence in the technology sector and government stimulus measures.
MSCI India Net USD showed a small 4.74% increase, indicating cautious investor attitude
On the contrary, MSCI Brazil dropped over 22%.
MSCI Emerging Market index gained 12.5%, while MSCI Asia ex-Japan surged 16.84% over the last year.
Outlook for 2025
As markets negotiate global economic upheavals, interest rate policies, geopolitical happenings, and technology improvements will all play important roles.
